Bitcoin price loses support at $19k as rising dollar takes a toll on global markets
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(Kitco News) – Global asset prices had nowhere to run in the face of a rising US dollar on Friday as the DXY climbed to a daily high of 113.226, its highest level since May 2002.
As a result of the rapid rise in the value of the DXY, global financial markets plunged into the red, with the S&P, Dow and Nasdaq all seeing their worst daily performance in weeks, ending the day down 2.62%, 2.59% and 1 .80%, respectively.
The story was the same for the crypto market, which saw a majority of the top 200 tokens trading in the red as fears of a continuation of aggressive Federal Reserve policies have prompted traders to reassess their exposure to the risky asset class.
Data from TradingView shows that a failed attempt by Bitcoin (BTC) bulls to rally above $19,500 resistance led to a slide below $19,000 support to reach a daily low of $18,541 before reinforcements arrived to bid back above $18 900.
BTC/USD 4-hour chart. Source: TradingView
The top crypto’s struggle to generate some momentum was cited in the morning BTC update by senior Kitco technical analyst Jim Wyckoff, who noted that “The keen global market turmoil late this week is not in favor of the BC bulls, who were hoping that the market anxiety would put a safe bid on Bitcoin.”
As it stands now, “The bears have the overall technical advantage in the short term amid a price downtrend in place on the daily chart,” Wyckoff said. “The path of least resistance for prices is currently sideways to lower.”
This potential for a bearish trajectory ahead was further validated by market analyst Rekt Capital, who posted the following tweet warning of a long-term support level turning into resistance.
#BTC continues to hover just below the red area low in the macro range
What this means is that an old support is potentially turning into new resistance
Monthly close like this would confirm this technical shift and could lead to a bearish continuation$BTC #Crypto #Bitcoin pic.twitter.com/rX5G0iOH2A
— Rekt Capital (@rektcapital) 23 September 2022
Caleb Franzen, senior market analyst at Cubic Analytics, also pointed to a disturbing development on the Bitcoin chart as the appearance of a large head and shoulders pattern heralds further declines in the top crypto.
Zoomed in view of head and shoulder pattern for #Bitcoin pic.twitter.com/AI0YqO7zTJ
— Caleb Franzen (@CalebFranzen) 23 September 2022
Overall, analysts seem to agree that right now may not be the best time to go all-in and buy the dip as a rising dollar and several global headwinds indicate further downside ahead.
Red across the altcoin market
The days Bitcoin struggles are known to hit the altcoin market even harder, and Friday was no different.
Data from CoinMarketCap shows that more than three-quarters of the top 200 tokens by market cap are in the red for the day, while those in the green experienced minimal gains.
Daily performance in the cryptocurrency market. Source: Coin360
The only two notable mentions include Reserve Rights ( RSR ), which rose 11.65% to trade at $0.0073, and Cronos ( CRO ), which saw its price rise 10.10% to trade at $0.1171 dollars.
The total cryptocurrency market cap is now $920 billion, and Bitcoin’s dominance rate is 39%.
Disclaimer: The views expressed in this article are those of the author and may not reflect the views of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept responsibility for any loss and/or damage arising from the use of this publication.
