Bitcoin (BTC)After another drop to its lowest levels since mid-March, it managed to reclaim $39,000 on April 27.
The Dollar Affects Everything, Especially Bitcoin
At the time of writing, it was trading at $39,200, up 2.5% on Bitstamp, according to data from Cointelegraph Markets Pro and TradingView.
April 26, new problems arose as soon as Wall Street trading started, Bitcoin following the stocks downhill once again, hitting $37,700 twice. Although this area was already on the radar as a liquidity catching opportunity, some seemed far from convinced that the sale had been made.
As quoted by Koinfinans.com, popular crypto trader Kaleo stated that the current relief is simply a “dead cat bounce”, noting that the real pain will come when momentum is lost.
“Okay, this price action on Bitcoin doesn’t show much upside at this point. We must also consider that any upswing has a backlash.” Cointelegraph writer Michaël van de Poppe stated these words and expressed his views on the current situation.
during the week, US dollar It showed no signs of ending its bull run, and the dollar index (DXY) continued to put pressure on crypto as it challenged decades-highs set in March 2020.
In a tweet on the subject, economist Lyn Alden shared, “DXY is reaching higher than my base state due to policymaker decisions outside of my base state.”
“Therefore, we need to be aware of the market issues that arise when this happens. This is not a milkshake (for example, the US is raising rates and buying stocks), instead all assets suffer.”
Cryptocurrencies Feel The Fear
Emotions among both crypto and traditional traders could very easily be read in the falling market sentiment. The Crypto Fear and Greed Index has reached its lowest level since April 12 and is at the “extreme fear” level at 21/100.
The traditional market counterpart, the Fear and Greed Index, has outstripped crypto in the “neutral” territory until recently. On April 27, he recorded 27/100, or “horror.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.