On one hand, Bitcoin has a new ally in its effort to break the US dollar out of its back, as Chinese Yuan is once again moving in the direction of BTC. On the other hand, it would seem that the market may have fallen victim to a major FOMO situation, as ETH is clinging to support at $400, while the BTC/USD pair has taken a hit that is more pronounced.
In the cryptocurrency space, Bitcoin is the gold standard of digital currencies. Having been the biggest cryptocurrency for the majority of 2017, Bitcoin is now on the verge of losing its crown. That’s because the market is now looking beyond Bitcoin and eyeing more stable players such as Ethereum.Bitcoin (BTC) remained at a low on the 9th. July below $33,000, and the new price drop also ended the strength of altcoins.
1-hour candlestick chart of BTC/USD (Bitstamp). Source: TradingView
BTC price rises by $33,000 from support
Data from Cointelegraph Markets Pro and TradingView tracked the price of BTC/USD, which fell below its previous support level on Friday.
The $33,000 level was tested several times early in the week, but remained a support that was not broken until Thursday.
Thereafter, $33,000 became a short-term support/resistance, with bitcoin failing to regain it and instead being rejected on any attempt to recover.
At the time of writing, the largest cryptocurrency was trading around $32,700 and remained in a narrow range with $32,000 as the lower limit.
Crypto trader Ed thinks it’s time to follow macro trends for clues as to what may happen to bitcoin.
The U.S. dollar in particular is in the crosshairs – the rising U.S. dollar index (DXY), which currently stands at 92.4, needs to weaken before the crypto-currency markets can catch their breath.
DXY continues to be the strong point of cryptography …. I don’t think that until the DXY reaches the red zone, it will reverse and continue its downtrend. ~That’s right, he commented that day.
One-day candlestick chart of the U.S. dollar currency index (DXY). Source: TradingView
As Cointelegraph often reports, a strengthening DXY is usually accompanied by increased pressure on bitcoin prices, although the reverse trend is also true. However, this inverse correlation is not infallible, and there have been many exceptions to this rule over the past year.
Altcoins surge as bitcoin falls
At the same time, the rise of Altcoin has been slowed by the decline of Bitcoin.
The top fifty cryptocurrencies by market capitalization suffered modest losses overnight, in contrast to earlier gains.
Related: Is bitcoin overbought or oversold? Use the Bollinger bands to find out!
Ether (ETH), the largest altcoin, has also moved sideways, despite continued progress on the upcoming London hardfork.
However, as trader and analyst Rekt Capital notes, the price could still aim for levels below $2,000 and remain in line with the overall uptrend into 2021.
There is strong support around $1850 – $2000, he added Thursday in several comments.
An attack at 0.070 BTC for the ETH/BTC pair also ended in defeat at the end of the week, failing before the important resistance at 0.075 BTC.
ETH/BTC (Bitstamp) 1-hour candlestick chart. Source: TradingView
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