Bitcoin (BTC) is yet again on the receiving end on the strengthening of the U.S Dollar. The U.S dollar had come under pressure ahead of the U.S midterm elections. However, with the election dust settling, the greenback appears to have regained its bullish momentum.
The dollar is sustaining bullish momentum heading into the Federal Reserve Policy Meeting. It has since held up against a crucial support level, in response to optimistic wage, price and labor market data. Likewise, the strengthening has spelled further trouble for the flagship cryptocurrency.
Bitcoin Price Action
Bitcoin has remained subdued ever since it imploded from record highs of $20,000 USD at the start of the year. The cryptocurrency has struggled to rise past the $6,800 USD mark in the second half of the year. The $6,600 USD level has also emerged as a critical resistance level upon which short sellers have continued to push it lower.
Price action activity indicates that BTC/USD has hit a bearish correction after a recent pullback. A medium-term descending trending line has once again capped upside action, fuelling a sell-off wave. The formation of a rising wedge pattern continues to signal a large downside correction.
The fact that Bitcoin price is currently flirting with a topline resistance of a wedge indicates a possible sell-off. A pullback from the top resistance level should attract more short-selling positions especially on the strengthening of the U.S dollar.
Crypto Bullish Sentiments
While most cryptocurrencies have lost a substantial amount of market value, analysts remain optimistic about a potential bounce back. For starters, there are those that remain confident of the market enjoying a bullish run similar to the one experienced in 2017. However, Bitcoin won’t be the one leading the charge as was the case in the past.
Overstock CEO, Patrick Byrne, expects increased adoption of cryptocurrency to help shore up prices. The executive remains skeptical about the mainstream financial system. That said, he expects cryptocurrencies to fill the void on mass adoption.
“When people start getting into it is when their own financial systems collapse,” he clarified. “Whether Bitcoin is the one, whether Bitcoin has solved its speed problem, or it’s another cryptocurrency, only time will tell,” said Mr. Byrne.
While Bitcoin has enjoyed a substantial period of stability, it remains under pressure more than ever. Therefore, bullish Bitcoin may become a rarity. Analysts remain uncertain about what the future holds in the coming months. However, most of them remain optimistic of the cryptocurrency experiencing steady growth in the coming years.
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