Bitcoin fights key trendline near $20K as US dollar index hits new 20-year high
Bitcoin (BTC) found a new focus just under $20,000 on July 14 as U.S. dollar strength hammered out yet another two-decade high.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD rebounding from lows sparked by a fresh 40-year high for U.S. inflation as per the Consumer Price Index (CPI).
After briefly dipping under $19,000, the pair took a flight above $20,000 before consolidating immediately below that psychologically significant level.
For on-chain analytics resource Material Indicators, it was now "do or die" for BTC price action when it came to a key rising trendline in place since mid-June.
On the day, that trendline stood at around $19,600, with BTC/USD now preserving it as support.
Gut check time for #Bitcoin bulls fighting for the trend line. #FireCharts pic.twitter.com/AUJmKXClU9
Significant gains meanwhile looked less likely for crypto markets thanks to the day once more being ruled by the U.S. dollar.
After tanking following the CPI print, the U.S. dollar index (DXY) returned with a vengeance to post its highest levels since 2002 — a phenomenon which had characterized much of the year.
The new peak measured 108.64, an increase of over 1% versus the 24-hour lows.
Beyond the short-term negative impact for Bitcoin and risk assets, USD strength was also bad news for other major world currencies, with the Japanese yen particularly in focus for BTC commentators
"Yen getting battered again today. Bank of Japan frozen in place, waiting for Fed reversal. Until then, they will continue to destroy their currency because they have no other option," popular Twitter account Stack Hodler argued on the day.
As Cointelegraph reported, some believe that the Fed will likewise have no choice but to halt inflation-busting
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