Bitcoin price is displaying acute strength despite the crypto markets including Ethereum price tumbling down. The growing strength within the star crypto may be an outcome of the US dollar becoming fragile. Ahead of the crucial CPI announcement, the DXY Index is plunging hard to reach the levels below $108 that have induced a significant momentum within the BTC price.
However, the conditions are expected to flip shortly as both the assets, Bitcoin & DXY Index appear to have stuck up in a trap!
On the other hand, the Ethereum platform is all set to undergo a Merger in less than 36 hours but the markets continue to remain uncertain. It appears that the impact of the event has faded over time. Nevertheless, the BTC price is believed to be at the peak of the bull trap and a significant drop may make its way out soon.
A popular analyst Bloodgood believes that the BTC price is primed to hit the lower support at $20,000 while the ETH price may fall prey to a “buy the rumor, sell on news”.
Conversely, the DXY Index seems to be preparing for the next leg up which may break the previous highs at around $110.78 and reach $112 in the next 24 to 48 hours. Hence flashing significant bearish signals for the BTC price at the same time.
Collectively, Bitcoin & DXY Index has been displaying a huge correlation, inversely, of-let. While the CPI figures are expected to drop slightly from the recent figures at 8.5% to 8.1%, the USD may gain notable strength ahead, challenging the BTC price & the entire crypto space.