Bitcoin continues to trade in a tight range with low volatility between the high area north of $19,000 and $20,000. The cryptocurrency is moving about critical support, but macroeconomic factors threaten to push it into previous lows.<\/p>\n
At the time of writing, Bitcoin (BTC) trades at $19,700 with a 1% and 8% loss in the last 24 hours and 7 days, respectively. The cryptocurrency\u2019s performance has been affecting the entire sector as Ethereum (ETH), Binance Coin (BNB), and another retrace to early August levels.<\/p>\n
BTC\u2019s price moving sideways on the 4-hour chart. Source: BTCUSDT Tradingview<\/a><\/p>\n At these low volatile levels, the battle between bulls and bears seems more evident. Bitcoin was able to close its August monthly candle about critical support which could contribute to a potential relief.<\/p>\n However, the U.S. dollar presents a potential short-term hurdle for risk-on assets. Data from a crypto analyst indicates that the currency broke about an important resistance and might make a fresh run into levels last seen in 2003.<\/p>\n As seen below, the U.S. dollar, as measured by the DXY Index, breach the resistance at 109 and could move into a multi-year high of 111 before re-testing previous levels. This breakout must be confirmed by a daily candle close but seems likely to extend as the dollar consolidated below resistance before running higher.<\/p>\n According to crypto analyst Justin Bennett<\/a>, this U.S. dollar rally poses a risk for digital assets:<\/p>\n The argument against a rally for risk assets is the $DXY, which is breaking above 109.30 today. Need the dollar to cool off for crypto to rally. Remember, though, that the daily close is what matters. Everything in between is noise.<\/p>\n DXY Index rallying on the daily chart. Source: Justin Bennett via Twitter<\/p>\n The U.S. dollar has been a constant obstacle for risk-on assets, such as Bitcoin. The cryptocurrency is displaying a negative correlation with the currency as investors flee into it to protect themselves from financial uncertainty.<\/p>\n Bitcoin And Equities On The Ropes<\/p>\n In that sense, traditional equities, positively correlated with Bitcoin and crypto, have been re-testing local support over today\u2019s trading session. The S&P 500 is testing the 3,900-support presenting a falling wedge pattern that Bennett believes could provide room for crypto and stock relief bounce.<\/p>\n The expert expects a spike in volatility, a potential decompression from this week\u2019s slow price action, as the U.S. will publish its Non-Farm Payrolls (NFP). As NewsBTC reported yesterday, this metric and the Consumer Price Index (CPI) will dictate a lot of the upcoming Fed decisions.<\/p>\n If the NFP misses market expectations, as analysis from trading firm QCP Capital suggests, the U.S. financial institution might be able to hint at a less aggressive monetary policy. This could support further bullish momentum for Bitcoin and the crypto market.<\/p>\n S&P 500 crashing into support on the daily chart. Source: Justin Bennett via Twitter<\/p>","protected":false},"excerpt":{"rendered":" <\/p>\n Bitcoin continues to trade in a tight range with low volatility between the high area north of $19,000 and $20,000. The cryptocurrency is moving about critical support, but macroeconomic factors threaten to push it into previous lows.<\/p>\n At the time of writing, Bitcoin (BTC) trades at $19,700 with a 1% and 8% loss in the last 24 hours and 7 days, respectively. The cryptocurrency\u2019s performance has been affecting the entire sector as Ethereum (ETH), Binance Coin (BNB), and another retrace to early August levels.<\/p>\n