Bitcoin price upside remains limited given the intermediate-term downtrend
Bitcoin price traded in a tight range between $35,000 and $38,000 after a few days of intense price volatility. At the time of publication, the largest cryptocurrency by market capitalization was changing hands near $36,833, up slightly over the past 24 hours but still well off its high of a week ago.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price failed to sustain a brief price rise from $32,900 to $39,000 over the past few days
Bitcoin extended its losses for much of Thursday, a day after hawkish comments from U.S. Federal Reserve Chairman Jerome Powell, as the stock market also fell with some traders betting that the central bank will raise interest rates more than four times this year.
A strengthening dollar is usually bearish for Bitcoin. BTC and the dollar index in the past have moved in opposite directions. Such inverse correlation became more noticeable last July. The trading volume across significant crypto exchanges was down from a day ago to its lowest level this week.
“Bitcoin price dominance is discussed commonly in crypto circles. After altcoins’ amazing 2021, BTC has discussed at less than half the rate it was a year ago. But social dominance is also important. Typically, high BTC social dominance is ideal”, Santiment stated.
BTC failed to sustain a brief price rise from $32,900 to $39,000 over the past few days. The cryptocurrency is trading in a tight range on intraday charts, and technical indicators are mostly neutral over the short term.
Price action has remained below a downward-sloping 100-day moving average on the four-hour chart over the past few weeks, indicating strong selling pressure. So far, oversold signals have preceded brief price rises, suggesting limited upside ahead given the persistent downtrend since November 2021. For now, buyers will need to hold support between $30,000 and $37,000 to stabilize the pullback.
Ether, the second-biggest cryptocurrency by market capitalization, was down over the same period and was trading at about $2,400. Most other significant altcoins were also in the red. Amid the bearish crypto movement, the U.S. dollar was strengthening. At the time of publication, the U.S. dollar currency index (DXY) was up by 0.79% over the past 24 hours to 97.2,
The overall cryptocurrency market cap stands at $1.657 trillion, and Bitcoin Dominance is 42.1%.
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