Upon further examination of the Bitcoin price action, crypto trading expert Michaël van de Poppe identified one possible cause for the cryptocurrency’s current choppy state, which is that the U.S. Dollar correlation with BTC is particularly strong at this time. According to Poppe, because Jerome Powell mentioned rate hikes a few weeks ago, the price action of Bitcoin resulted in a downward trend along with equities and indices. Now, the analyst considers the dollar is going to move by 50 basis points (BPS) with the rate hikes next week. He added:
Bitcoin price movement
The fact that Bitcoin has been taking liquidity above highs on the U.S. Dollar Index (DXY) and that its Relative Strength Index (RSI) is so high on the DXY at this moment indicates that this is the only asset to look at at this point in time, according to Poppe. Regarding what the analyst identifies as crucial levels to maintain as the support, he added: Presently, Bitcoin is trading at $38,991, up 0.72% in the last 24 hours down 8.28% in the last week, as per data from CoinMarketCap. Finally, Poppe is not the only one who thinks that the price of BTC will climb over the next few weeks as the crypto community, with 83% historical accuracy has set a bullish Bitcoin price for May 31, 2022. Watch the video: Bitcoin preparing for a breakout Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
