U.Today – Historically, the performance of the U.S. cryptocurrency market and the dollar index (DXY) have a clear negative correlation. The gains and gains of other cryptocurrencies have often been the result of a fall in the DXY. This relationship made sense, as falling dollar values ​​usually cause investors to turn to alternative assets such as cryptocurrencies.
However, the current state of the market seems to be breaking this pattern. Given that the DXY has fallen significantly and recently hit an all-time low, it is reasonable to expect Bitcoin and the larger cryptocurrency market to surge in response.
The animated nature of the cryptocurrency market itself may be one reason for this broken connection. The market is becoming increasingly sophisticated as it ages, with more variables than just DXY influencing it. Today’s cryptocurrency prices are heavily influenced by regulatory changes, market sentiment, and macroeconomic uncertainty.
The cautious approach that has prevailed in the market recently may also be a contributing factor. Recent regulatory volatility in the market and ongoing concerns about the stability of the global economy may make investors wary of investing in riskier assets such as cryptocurrencies. The usual excitement that a falling DXY would generate may be tempered by this cautious approach.
finally meets resistance
Shiba Inu has reached the 26-day exponential moving average (EMA), a key resistance level that traders are keeping a close eye on. This is the first significant hurdle that SHIB needs to clear to maintain its upward trajectory and perhaps pave the way for future gains.
SHIB’s successful breakout of the $0.000014 price level, which served as key support and gave the current rally the required momentum, led to a move closer to this resistance level. The breakout of the key $0.000014 level has encouraged traders and SHIB holders to be sanguine as it could indicate that the cryptocurrency is ready to move higher.
Still, the 26 EMA is a significant obstacle. This moving average has shown its ability to accurately predict trend continuation or reversal in the past. A more sustained uptrend could begin if SHIB is able to break above this resistance. On the other hand, if this level is not reached, a pullback or consolidation could occur, exposing SHIB to further downside pressure.
With the recent surge in trading volume and renewed interest from the broader cryptocurrency community, market sentiment around Shiba Inu is cautiously sanguine. The price could rise further on the back of a successful breach of the 26 EMA, which has attracted more buyers. However, the current resistance level could also act as a rejection point that could cause the rally to stall for a while. As such, investors should remain cautious.
Is Bitcoin Value Peaking?
Bitcoin may be close to forming a local double top, which is a technical pattern that usually indicates a bearish market turn. This pattern is often interpreted by traders as a warning sign, suggesting that the recent bullish rally may be coming to an end and that a pullback from current levels could be coming.
When the price of an asset reaches a certain level, pulls back, then rises to the same level, then falls again; this pattern is known as a double top. The result is two roughly equal highs, or peaks, indicating that the market has not broken through a significant resistance level. This pattern begins to emerge in Bitcoin at the $62,000 level, which has proven to be resistance on multiple occasions. As a sign that there may not be enough buying momentum to push the price higher, the possible formation of this double top pattern worries Bitcoin supporters.
Investors should remain cautious and watch price action closely, as a break below the neckline of a double top — the point where two peaks meet — could lead to additional selling pressure. The market is reacting as expected, although it is too early to say for sure that a double top has formed.
