Meta Digest

US Dollar Surge Reduced Bitcoin Price Performance as Bitcoin Plunge Under $47K

Source: SCMP

Bitcoin is seeing more trouble on a short timescale, with Ethereum emerging as a popular bet.

On January 3, Bitcoin (BTC) crossed $47,000 as the first Wall Street trading days of 2022 kicked off to a humble beginning.

As the week began, traders were split between short-term outcomes. BTC/USD has been trading in a narrow range. 

“It’s just a matter of time before BTC breaks out, and the longer it takes, the harder it will pump,” captioned Galaxy, a renowned Twitter account, together with a photograph of the charts. “Q1 is up only. You heard it here first.”

Michaël van de Poppe, a contributor for Cointelegraph and an expert in cryptocurrency analysis believes it’s time to take a closer look at altcoins rather than just focusing on Bitcoin.

“Good bounce from Ethereum and I think this one is bottomed,” says van de Poppe in a tweet on Monday indicating the good state of ETH/USD. “Still need additional confirmation, but shows more strength than Bitcoin at this point. Ultimate confirmation above $4,100.”

It has been a few weeks now since BTC/USD has shown propensity in daily highs, while ETH/USD was up more than 2% recently. 

The S&P 500 rose a touch at the Wall Street open, as investors weighed prospects for higher interest rates and other economic data over coming months. 

Meanwhile, the U.S dollar saw a sharp increase on January 3rd, with the USD Index booming following Bitcoins’ downfall. 

Several Bitcoin-focused analysts, TechDev specifically, have come out to argue that on-chain indicators do not back a bearish thesis.

TechDev said that both relative strength index (RSI) and moving average convergence/divergence (MACD) are only minor indicators when compared to more fundamental ones.

Alistair Milne, an entrepreneur, added to the list of meaningful comments: “In case no-one noticed, we have come a long way from nerdy retail HODL’ers being the buyers of last resort.” 

“We now have billionaires, multinationals and countries waiting to buy the dips. Whoever is taking the other side of the trade needs their head examined IMO,” he said. 

A new influx of institutional interest is considered by some to be ready for a new month.

Opinions expressed by Meta Digest contributors are their own.