The U.S. dollar index (DXY) has risen above the highs created in March 2020 and may next challenge the multi-year highs set in January 2017. Bitcoin’s (BTC) price action is generally inversely connected to DXY. Therefore, unless the dollar reverses its sharp uptrend, a strong recovery in Bitcoin may be difficult.
Although Bitcoin has not confirmed a bottom, institutional investors seem to have started their purchases at lower levels. Canada’s Purpose Bitcoin exchange-traded fund added 1,132 BTC to its holdings, according to data analytics platform Coinglass. Behavior analytics resource Santiment also suggested that the crowd’s interest in buying the dip hit a six-week high.
The crypto sector has been under pressure in 2022 but that has not reduced venture-capital (VC) activity in different blockchain sectors. The first quarter of 2022 has witnessed VC investments of more than $14.6 billion in the blockchain industry, which is 48% of the total investments made by VC’s in 2021. This shows the long-term growth potential of the industry.
Could Bitcoin and altcoins start a recovery from their respective support levels? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin’s recovery on April 26 stalled at the 20-day exponential moving average ($40,618), suggesting that the sentiment remains negative and traders are selling on rallies. A minor positive is that the price has rebounded off the support line of the ascending channel today indicating that bulls are attempting to defend this level.
If the bounce sustains, the bulls will again strive to push the price above the 20-day EMA and the 50-day simple moving average (S42,038). If they succeed, it will suggest that the BTC/USDT pair could extend its stay
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