Bitcoin price is experiencing one of its biggest setbacks since the asset broke the $ 10,000 resistance. The explosive move, triggered in part by the dollar’s collapse, could be reversed just as the dollar prepares for its comeback against other currencies, gold and crypto.
Will the dollar rally take revenge on hard assets and cause markets to collapse again?
Analysts say the dollar will recover – end of the crypto rally? BTCUSD has traded around $ 11,850 since it opened on Wednesday morning, after falling nearly 7% from its highs at the beginning of the week. Bitcoin price hit over $ 12,000, climbed to $ 12,400, and continued to peak in 2020.However, after touching key levels, the very first cryptocurrency began a short-lived retreat. The asset has so far found support at $ 11,750, but if the dollar is ready to bounce back it could get a lot worse for Bitcoin and other hard assets.
How will Bitcoin react to the dollar?
However, should the dollar fall, it could be disastrous for Bitcoin. Some of the recent strength in cryptocurrencies and precious metals is directly tied to the falling dollar. An inverse BTC chart compared to the DXY dollar currency index shows almost a 1: 1 correlation. If the dollar reverses sharply, as Williams and the indicators suggest, Bitcoin is likely to experience an abrupt crash as a result.