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Bitcoin Price Clings to Near Term Support Despite Latest Dollar Index Surge

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The US dollar experienced a substantial increase over the weekend. Since the dollar usually trades inversely proportional to Bitcoin, analysts predicted that the Bitcoin price should have declined over the weekend. However, Bitcoin appears to be holding steady.

Defying the Surging Dollar 

Crypto researcher and analyst Lark Davis tweeted earlier today that the US Dollar Index (DXY) has now crossed 114.5 points, reversing the relative strength index (RSI) decline.

The spike in the dollar’s value coincides with a drop in several other currencies. The British Pound dropped to $1.03 – its lowest point against the greenback – earlier this week.  

Several analysts, perceiving the current trend, have sought to capitalize. A tweet from analyst Crypto Rover on Sunday forecasted a significant decline in Bitcoin, and several comments encouraged traders to open short positions, as the leading cryptocurrency could easily experience a significant decline.

However, Bitcoin’s ability to serve as a hedge against inflation is typically cited as one of the many advantages of cryptocurrencies by its enthusiasts. The argument is that Bitcoin allows investors to earn profits even when fiat currencies, particularly the US dollar, struggle. An increase in dollar performance would also have an impact on the leading cryptocurrency. 

Bitcoin Hangs on Despite Bearish Sentiment 

Regardless of the forecast and speculations, Bitcoin remains stable. The asset currently trades at $19,203, marking a 2.03% 24-hour uptrend. 

BTC Price Chart

Bitcoin’s low point also remains at $18,535, which it hit on September 23. 

BTC Price Chart

Market Sentiment Looking Forward 

The bear market has encouraged many investors to think long-term and position themselves to enjoy gains down the line. 

Glassnode, one of the crypto market’s leading data analytics providers, recently shared that its CoinDays Destroyed (CDD) metric has reached new lows. The metric describes the number of dormant days that are erased when Bitcoin leaves a host wallet after a specific period. When CDD is low, it suggests that fewer coins that are being stored long-term are now on the move. 

Per Glassnode, the total volume of Bitcoin coin-days destroyed in the past 90 days has reached an all-time low. This suggests that coins that have been held for several months or years are as dormant as they have ever been, and investors are less willing to move their coins.   

However, the market still has a long way to go before regaining a bullish streak. Holger Zschaepitz, a market commentator, recently warned that the global bond market appears to be taking hits, with the value of global bonds down by $1.2 trillion last week alone. Stock futures are down, and the Brent crude oil price recently fell below $85 per barrel for the first time since the year commenced. 

Cryptocurrencies have largely performed like traditional financial tools like stocks. However, crypto assets like Bitcoin have remained largely tenacious, and investors should keep their fingers crossed on the next steps for the popular crypto bellwether.

Tamadoge: An Opportunity for Investors to Enjoy Gains

Although the broader crypto market outlook remains bleak, investors still have opportunities to maximize value and earn profits. 

TAMA is one asset that offers investors such opportunities. It is the native token for Tamadoge – a blockchain gaming project proving to be one of the most exciting new launches in the market. Tamadoge combines blockchain gaming with non-fungible tokens (NFTs), allowing players to earn rewards in the form of NFTs and TAMA tokens. The platform’s developers are also expected to make a play for the metaverse soon. 

After launching its presale in July, TAMA raised $19 million for its developers. TAMA is now expected to list on the OKX exchange this week, kicking off a wave of exposure to investors. 

With the Tamadoge platform also expected to launch before the end of the year, there is a lot of excitement about the asset’s prospects.