NAIROBI (Coinchapter.com) – Bitcoin, the digital currency behemoth, faces significant macro challenges, according to Jamie Coutts, CMT. Recent weeks have seen a shift in macroeconomic indicators, signaling potential turbulence for Bitcoin and the broader cryptocurrency market. However, Coutts highlights an undercurrent of optimism, pointing to a favorable long-term liquidity cycle for cryptocurrencies.
Despite the overall positive sentiment surrounding Bitcoin, Coutts notes that several indicators in his macro-state regime model have turned negative in recent weeks. This suggests that cryptocurrency may face some macroeconomic challenges in the near term.
“Currently, the DXY is trapped in a narrow consolidation range. A break above 107-108 would put serious pressure on all risk assets,”
Coutts explains.
However, the seasoned analyst believes that a potential break below the 101 level in the US Dollar Index (DXY) could have a more favorable impact on Bitcoin and the broader cryptocurrency market.
“A break below 101 should see a move to the low 90s which if that were to occur would likely send BTC to $150,000 based on previous DXY moves,”
Coutts added.
Bitcoin is currently hovering above $60,000, showcasing a level of resilience despite ongoing market uncertainty. Examining things more closely, two key support zones stand out: approximately $60,000 and $57,000. These zones act as potential buffers, minimizing the risk of sharp price declines.
The $57,000 level aligns with the realized price of highly active Bitcoin addresses. In other words, it marks a point where a concentration of users previously acquired their holdings. The $60,000 zone bears significance as the realized price point for short-term Bitcoin whales.
Despite Bitcoin’s macro headwinds, the longer-term liquidity cycle remains extremely favorable for Bitcoin and the broader cryptocurrency market. This consolidation period offers investors an opportunity to employ dollar-cost averaging (DCA) strategies, providing a chance to accumulate BTC at favorable prices.
While Bitcoin faces macro challenges, the favorable liquidity cycle and key support levels suggest a resilient market. Investors should closely monitor the DXY’s behavior, as a breakout in either direction could significantly impact BTC’s price trajectory. The current consolidation phase presents a suitable time for DCA strategies, allowing investors to build their BTC positions at attractive levels.
PEPE Trader Makes $21 Million A savvy crypto trader turned $21 million in profits from…
Cardano Whales Accumulate ADA Cardano (ADA) whales have begun accumulating ADA as the coin sees…
Zug, Switzerland, May 17th, 2024, ChainwireAlephoria invites web3 users to the Aleph Zero ecosystem with…
Notcoin (NOT) Plunges 55% Notcoin (NOT) has plunged 55% post-launch as airdrop farmers sell off…
ONDO Signals Possible 120% Rally Ondo Finance's native token, ONDO, has recently broken out of…
The resurgence of Shiba Inu (SHIB) with a predicted 50% uplift highlights the ongoing appeal…