Bitcoin price slow to react as US dollar rally stops at 20-year highs

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Trader eyes $40,600 as “crucial” breaker

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hugging support near $39,300 after failing to hold $40,000.

The pair had managed some modest upside despite a “parabolic rally” in U.S. dollar strength throughout the week.

The U.S. dollar index (DXY) finally began cooling Friday after reaching its highest levels since 2002.

Despite its inverse correlation, BTC/USD had yet to show any signs of direct benefit from the changing mood at the time of writing.

Cointelegraph contributor Michaël van de Poppe was nonetheless confident that bullish momentum would return to Bitcoin in the short term.

“Bitcoin is getting into a narrow playing field and is ready for a big impulse move,” he told Twitter followers on the day.

“I’m betting on the upside, as the DXY is showing some weakness too. Crucial level to break: $40.3-40.6K first.”

Van de Poppe had previously highlighted current spot price levels as crucial to hold in order to open up the path towards $42,000 and above.

U.S. dollar currency index (DXY) 1-day candle chart. Source: TradingView

Further tailwinds for BTC came in the form of Asian market trading, meanwhile, with the Shanghai Composite Index up 2.4% and Hong Kong’s Hang Seng managing 10% on the day in a broad comeback from earlier Coronavirus-induced sell-offs.

Hang Seng Tech Index jumps 10% after China makes another pro-market statement. A meeting is set to occur soon between govt & major tech comps, raising hopes that the regulatory landscape for this industry is set to ease going forward. (HT @knowledge_vital)

— Holger Zschaepitz (@Schuldensuehner) April 29, 2022

European indices were flatter, with Germany’s DAX up 1.2% and the FTSE 100 up 0.35% in London.

Research warns over hodler “capitulation”

Examining who among Bitcoin holders is selling in current conditions, popular analyst Root identified changing tendencies among long-term holders (LTHs) — those with coins unmoved for 155 days or longer.

Related: $27K ‘max pain’ Bitcoin…



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