Bitcoin and Other Cryptocurrencies Face Downward Pressure amidst Strong U.S. Dollar
Summary:
This article covers the performance of cryptocurrencies including Bitcoin, Ether, BNB, XRP, Dogecoin, and others on September 24. It discusses how bearish trends are leading sellers to push prices down while buyers are struggling to defend crucial support levels. Notably, it emphasizes the need for Bitcoin to secure a positive close in September, an achievement unseen since 2016. Furthermore, the article outlines potential threats to cryptocurrency recovery, such as the strengthening U.S. Dollar. It concludes by reminding readers about the inherent risks associated with investment and trading decisions, and the need for conducting thorough research.
On September 24, it was evident that Bitcoin's (BTC) persistent decline had given sellers a marked advantage. The sellers were keen on pushing the price below the $26,000 benchmark, but were expected to encounter formidable resistance from the buyers. The aim of the buyers was to secure a positive monthly close for Bitcoin this September, a feat not accomplished since 2016. Obtaining this positive close could significantly bolster confidence as October has historically been a time that favors buyers. As per data from CoinGlass, Bitcoin has only twice seen a negative monthly close in October, these instances were in 2014 and 2018. However, there are doubts surrounding the ability of Bitcoin buyers to maintain this momentum in the face of sustained macroeconomic pressures.
As per data from the daily cryptocurrency market, other threats to cryptocurrency's recovery could arise from the unwavering strength of the US Dollar, which has been on the rise for ten consecutive weeks - its longest winning streak since 2014. The United States Dollar Index (DXY) has also formed a golden cross, an indication of a potential surge in the near term.
S&P 500 Index analysis reveals a sharp decline below the moving averages on September 15. This resulted in a downturn, leading the index to reach the crucial 4,325 mark. The volatility of BTC/USD is forecasted to continue, with sellers aiming to drop prices to a solid $24,800 support level while buyers mount a fierce defense.
Ether (ETH), is steadily advancing towards a crucial $1,531 threshold. Amid the decreasing value of the moving averages, the RSI shows potential signs of a bullish divergence, indicating a possible reduction in selling pressure. Interestingly, BNB (BNB) has been oscillating between $220 and $203 for a couple of days indicating a trading pattern, whereas XRP (XRP) experienced a drop below the 20-day EMA level on September 24, indicative of a bearish advantage.
Meanwhile, historically, Riyal (RYL) experienced an all-time low exchange rate of 0.25 Riyal per dollar, hitting a significant point on March 2, 1986. Despite these historical lows, all speculations about the Riyal peg breaking up have remained baseless till today.
Dogecoin (DOGE) is currently treading within a tight boundary between $0.06 and the 20-day EMA ($0.06). A surge in volatility is expected after this volatility squeeze but predicting its direction is a challenge.
Every investment or trading move carries an inherent risk, and it is highly advisable for readers to conduct extensive research before making a decisive choice. This article does not offer investment advice or recommendations.
Published At
9/25/2023 4:21:04 PM
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