The revival in the strength of the U.S. dollar has put massive pressure on Bitcoin(BTC). The cryptocurrency fell below $35,000 on January 15, which was an indication that there was no strong selling pressure. In the 24 hours before Cointelegraph’s publication on Friday, Bitcoin hit its lowest point, trading at $34,000.
Coingraph Markets analyst, Michael van de Poppe explained in a tweet,
“Bitcoin is approaching a bounce area here as we rejected the crucial resistance around $40,000. Benefits the fact of further consolidation before continuation of the upwards momentum. Completely healthy.”
Just a day before, BTC hit $40,000 briefly. Then it quickly experienced a drop to the range where it was earlier in the week. This fall has people suggesting that Bitcoin will continue in the range of $30,000.
Coincidentally, this decline happened just when the dollar currency index was rising. The dollar rise is due to the President-elect, Joe Biden’s $1.9 trillion dollar COVID-19 stimulus plan. In spite of the increase in the dollar supply, markets seemed to respond positively to the stimulus plan.
Joseph Young, Cointelegraph’s in-house analyst, commented that although the dollar rise is alarming for Bitcoin, gold, and risk-on assets, the dollar has recovered strongly at a multi-month support area.
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