U.Today – Historically, the performance of the US cryptocurrency market and the dollar index (DXY) have a pronounced negative correlation. The rally of the dollar and other cryptocurrencies was frequently the result of a fall in the DXY. This relationship made sense because falling dollar values usually cause investors to turn to alternative assets such as cryptocurrencies.
However, it seems that the current state of the market is breaking this pattern. Given that the DXY has fallen significantly and recently hit all-time lows, it is reasonable to anticipate that Bitcoin and the broader cryptocurrency market will rise sharply in response.
The dynamic nature of the cryptocurrency market may be one of the reasons for this break in the bond. The market is becoming increasingly complex as it ages and is affected by more variables than just the DXY index. Current cryptocurrency prices are heavily influenced by regulatory changes, market sentiment, and macroeconomic uncertainty.
The cautious attitude that has prevailed in the market lately may also be a contributing factor. Recent volatile market regulatory measures and lingering concerns about the stability of the global economy may make investors wary of investing in riskier assets such as cryptocurrencies. The usual enthusiasm that a fall in the DXY would have generated may be tempered by this cautious approach.
Finally meets resistance
Shiba Inu has reached the 26-day exponential moving average (EMA), a key resistance level that traders are closely watching. This is the first major hurdle that SHIB needs to overcome to maintain its upward trajectory and perhaps pave the way for further gains.
SHIB’s successful breakout above the $0.000014 price level, which served as a crucial support and gave the current rally the necessary momentum, has led to the approach of this resistance level. The breakout of the crucial $0.000014 level has encouraged traders and SHIB holders to be optimistic as it may indicate that the cryptocurrency is ready to move higher.
Still, the 26-day exponential moving average (EMA) is a major hurdle. This moving average has proven its ability to accurately predict trend continuation or reversal in the past. A more persistent uptrend could begin if SHIB manages to break through this resistance. On the other hand, failure to reach this level could result in a pullback or consolidation, which would expose SHIB to further bearish pressure.
With the recent surges in trading volume and renewed interest from the broader cryptocurrency community, the market sentiment around Shiba Inu has been cautiously optimistic. The price could surge further as a result of the successful breakout of the 26 EMA that attracted more buyers. However, the current resistance level can also act as a rejection point that could cause the rally to pause momentarily. Therefore, traders need to be cautious.
Is Bitcoin Reaching Its Peak?
Bitcoin could be on the verge of forming a local double top pattern, which is a technical pattern that usually signals a bearish market reversal. Traders often interpret this pattern as a warning signal, suggesting that the recent bullish rally may be coming to an end and a price pullback to current levels may occur.
When the price of an asset hits a certain level, pulls back, and then rises back to the same level before turning back down – this pattern is known as a double top. As a result, two roughly equal peaks or tops occur, indicating that the market has failed to break through a significant resistance level. This pattern is starting to appear in Bitcoin’s case at the $62,000 mark, which has proven to be resistance on several occasions. As a sign that there may not be enough buying momentum to push the price higher, the potential formation of this double top pattern has Bitcoin proponents concerned.
Investors should proceed with caution and closely monitor price developments, as a break below the neckline of the double top (the point where the two peaks meet) could generate additional selling pressure. The market is responding as expected, although it is still too early to declare with certainty that a double top has formed.
This article was originally published on U.Today
