Over the past 24 hours, the price of bitcoin has dropped significantly; the cause of this is yet unknown. The altcoins experienced significant selling pressure, which led to a price drop of more than 10 percent on the previous day. Due to the latest price decline, Bitcoin lost the majority of its gains made over the previous week.
Well-known cryptocurrency analyst Benjamin Cowen believes a signal could determine whether bitcoin[बीटीसी]Whether or not a bear lives in the market. Cowen informed in a new strategy session that bitcoin has historically had a negative correlation with the US Dollar Index (DXY).
“Now a lot of times, when you see the dollar going up, it’s sort of like a wrecking ball: it makes most other things go down. Generally, you could view it as people fleeing into the relative safety of the US dollar.”
DXY calculates the value of the dollar in relation to a basket of six different currencies. Since 2008, the dollar index has been on an overall macro growth, according to Cowen. He observed that the sharp rise in the dollar index and bitcoin bear markets usually coincided. As he said, the overall correlation is that as long as the dollar is rising, Bitcoin will largely be expected to remain either in a bear market or in the early stages of its accumulation phase.
Bitcoin was unable to overcome the $25,500 barrier level. The crypto may have lost momentum as a result and dropped below the trendline as a result. Lack of buyer pressure led to sellers taking control. The bears were back on the chart as of publication. If purchasers don’t step up to the plate, the bears could cause the coin to suffer more losses. BTC was currently trading at $21,497 at the time of writing.
