Strengthening Dollar Contributing to Investors Aversion in Bitcoin
Bitcoin fell the lowest level in the last week to touch US $ 18K. Based on technically in US Dollar index the price continued to rise after touching a strong support level (check on tradingview below). That pushed riskier assets including crypto assets even deeper into the red. Federal Reserve policies, meaning the Fed's power to raise, pause, or lower interest rates will be impact on Bitcoin prices, ETH prices, and altcoin prices. The following dates highlight important economic events that have a history of impacting investor sentiment in the crypto market:
- Oct. 12: Federal Open Market Committee (FOMC) minutes
- Oct. 12: Consumer Price Index (CPI) report
- Oct 13 : Inflation Rate YoY
Based on CoinMarketCap (12/10), in a week some biggest coin drops BTC till -5.65 %, ETH -5.30 % and BNB -7,85%. Illustration of Fear and Greed Index Crypto is in the Extreme Fear category at level 20 while last week's data included Extreme Fear at 25. It is difficult for Bitcoin market to start a strong sustained recovery while the US Dollar is nearing multi-year highs. This indicates that sentiment remains negative and investors are not interested in taking risks in their portfolios.
BTCUSDT market movement in technically began drop and break the neckline. If the US Dollar continues to rise, in technical analysis the Bitcoin market will probably drop to support levet at US$ 18,247.91 . Right now, there is no confirmation in technical for entry in Bitcoin. Investors' appetite for risk is likely to slow down, even crypto traders might consider waiting for signs of entry.
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