Bitcoin Rising, But Fear Rising, And DXY Is At Critical Point

Bitcoin (BTC) has been able to rise nicely since yesterday evening. It is noticeable that analysts are again cautiously slightly more bullish begin to be. Nevertheless, the fear in the market continues to increase. According to the Fear & Greed index, fear is now at its highest level since the corona crash of March 2020. Opinions also remain divided whether bitcoin has already reached a bottom or not.

Bitcoin price rises by 2.6%

The bitcoin price rose to $31,300 on Sunday night, but was rejected there. Bitcoin fell back to USD 29,500 overnight and found support there yesterday morning. Bitcoin then briefly broke through $30,000, but didn’t get much further than that.

Bitcoin then began to fall again, reaching $29,300 last night. For now, bitcoin seems to be a pattern of higher lows since the dip to $26,600 last Thursday. Starting at $29,300, bitcoin made a significant bouncebut the price couldn’t break through $30,000 right away.

Towards the end of last night it succeeded and the price then held at around $30,000 overnight. Bitcoin jumped this morning and is currently rising towards $30,600 on KuCoin and $29,200 on Bitvavo at the time of writing. This means that the BTC rate is 2.6% in the plus today.

DXY price drops to crucial point

Bitcoin started falling yesterday afternoon as stock markets like Nasdaq and S&P 500 opened in the red. Both markets also ended the day in the red, but bitcoin started to rise shortly after. However, that does not mean that the long-awaited decoupling has taken place, as some may say a little too enthusiastically.

It may be more important to look at the US dollar index (DXY) rate again at the moment. It has fallen sharply in recent days and is now back in the range that resisted for weeks. If DXY now turns this resistance into support and bounces, it could turn out badly for bitcoin, but also vice versa.

Bitcoin Resistance Areas

Bitcoin could rise all the way back to the known $38,000 to $39,000 range once the $31,222 breaks, Whale Maps reports. Bitcoin was rejected around that price on Sunday night.

Despite this, bitcoin was also recently rejected at $32,000 and there could still be some resistance between $34,000 and $37,000. There is also still the chance that bitcoin will go even deeper lows will look for it if the broader market is not going well.

Highest BTC trading volume in eight months

Meanwhile, Coinalyze reports that last week saw the highest trading volume since fall of last year. That spike, however, was related to the major crash of Terra (LUNA) last week, the sale of the Luna Foundation Guard’s BTC reserves and investors who bought the dip. In the meantime, the volume has fallen sharply again.

Crypto Insiders Premium for bitcoin analytics

Do you want to learn more about trading crypto and analyzing prices? Join Crypto Insiders Premium and come and have a look for free for the first 30 days! Ask analysts questions, chat with our avid community, and receive technical and fundamental analysis daily.