- Bitcoin price had suffered their first significant bearish trend of 2021 by facing a loss of more than 12%
- The downfall is assumed to be a cause of rising U.S. bonds yield that lifted the dollar and provided a negative trend to the crypto market
- Technical Levels suggest that BTC might test the crucial mark of $30K if the dollar continues to build its strength
First Potential For Bitcoin Price VS U.S. Dollar in 2021
Bitcoin price levels were grooving with the positive volume provided by institutional buyers including Grayscale, Fidelity Investments, Massachusetts Institue of Technology, and many more following FOMO among the retail investors too. With the bulls embracing the world’s largest cryptocurrency from the starting of the year, the price levels made new ATHs at regular intervals this month. However, the sole competitor of Bitcoin,i.e., the U.S. dollar, provided trouble to other financial markets consisting of commodities (Gold faced the loss of 1.50%) and an overall crypto market conditions. The U.S. Dollar has performed positively against several major other centralized currencies due to notable positive moves in U.S. bond yields hurting the other investing assets. The treasury yield curve has witnessed a significant increase within a short timeframe by 20-22 basis points. The reason behind this positive move is assumed as substantial repressing of yields by Fed policy.
Bitcoin Takes Negative Turn on Price Chart
On the weekly chart, Bitcoin price levels were building sustainability above the crucial bullish mark of $40K, but continuous resistance from $42K and a rational profit-taking opportunity for the holders provided a negative breakout. The magnitude of the negative divergence got enhanced during the past couple of trading sessions with the U.S. Dollar increasing its strength in the global market. The price levels have bounced back from the price mark of $33K, acting as a strong support point for the bulls. The CMP is placed at $36,038.20 with an overall loss of -12.35%, bringing the market capitalization to $663,661,620,597, resulting in a decline of 12.82%. The 24-hour volume traded has reached $102,160,766,000, increasing by 57.52%, which defines the magnitude of the crypto king’s selling pressure.
BTC Forms Falling Wedge on Technical Chart
The technical chart of Bitcoin has formed a falling wedge pattern due to ongoing downtrend. BTC faced negative breakouts below 20-EMA and 50-EMA, respectively. If the downtrend for the crypto king continues in the upcoming trading sessions, one can expect 200-EMA to be acting as a strong support line. On the contrary, a positive breakout from the falling wedge pattern can be an indication for a comeback of the bulls.
The moving average convergence & divergence (MACD) faced a bearish crossover, moreover the levels are now below the signal line providing negative signals.
The relative strength index (RSI) faced a negative breakout to the oversold region and currently standing at 41.08.
The directional movement index (DMI) also showcased bearish nature as -DI remained above ADX.
Resistance Level: $42,000.00 & $38,700.00
Support Level: $33,000.00 & $28,600.00
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