Glassnode Co-Founder’s Prediction: DXY Set To Peak, Fueling Potential Bitcoin Rally To $37,000
August 21 2023 - 5:00PM
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The largest cryptocurrency by market cap, Bitcoin (BTC), dropped
after a prolonged period of consolidation around the $29,000 mark.
The failure to sustain this level has resulted in a decline to
$26,000. Interestingly, Bitcoin’s recent reversal has coincided
with speculations of an imminent bull run, with many believing that
the cryptocurrency winter is over and that lower price levels will
not be revisited. Nonetheless, this sentiment shifted on July
14th when the US Dollar Index (DXY) initiated a robust rally,
surging from 99 points to its current level of 103. As the DXY
began its ascent, Bitcoin’s trajectory turned downward, leading to
a downtrend that caused the cryptocurrency to relinquish a
significant portion of its 2023 gains. Conversely, before July, BTC
experienced a surge to its yearly high of $31,800, while the DXY
declined. Despite this development, Glassnode co-founder Yan
Allemann suggests that in the coming months, it will be Bitcoin’s
turn to reclaim the spotlight and assert its dominance once again.
BTC’s Last Consolidation Phase? Glassnode co-founder Yan Allemann
has shared insights on the current market conditions and predicts
an imminent surge in Bitcoin’s value as the autumn approaches.
Allemann’s analysis suggests that the US Dollar is expected to
reach a peak level of 106, which will catalyze a prime environment
for Bitcoin. Historically, the inverse correlation between
the Dollar and Bitcoin has been observed, where a stronger Dollar
tends to put downward pressure on the cryptocurrency’s price.
Conversely, a peak in the Dollar often coincides with a favorable
environment for Bitcoin to thrive. Related Reading: Dogecoin Proof
Of Stake Discussion Heats Up As Lead Dev Chimes In This said,
Allemann believes that Bitcoin is projected to reach the $37,000
level before embarking on a significant upward movement during the
autumn season. This anticipated surge in value aligns with
the patterns observed in previous market cycles, where Bitcoin has
experienced notable price rallies during the latter part of the
year. It remains to be seen how this narrative unfolds, but one
thing is clear: the dynamics between Bitcoin and the US dollar
continue to shape the cryptocurrency landscape. Historical
Data Reveals September Struggles For Bitcoin According to data by
CoinGlass, August, and September have historically presented
challenges for Bitcoin, making them notorious months for the
cryptocurrency’s performance. With 10 days remaining until
the monthly close, August has already proven to be a difficult
month for Bitcoin, experiencing a 12% decline over the past 30
days. However, this downtrend may not come to a halt just yet, as
historical data indicates that September could pose additional
obstacles to Bitcoin’s price trajectory. Examining the chart above,
it becomes evident that September has historically been a
challenging period for Bitcoin. In some instances, the
cryptocurrency has witnessed substantial price drops, reaching as
high as 19%. This suggests that the coming month could potentially
be characterized by further downward pressure on Bitcoin’s price.
However, it is important to note that historical trends also
indicate the possibility of more modest declines. In 2013, for
example, Bitcoin’s price only decreased by 1% during September,
defying the broader negative sentiment associated with the
month. This demonstrates that while September has a
historical reputation for difficulty, it does not guarantee a
significant downturn for Bitcoin in every instance. Related
Reading: Gemini Hits Back At SEC Lawsuit With Dismissal Filing
While Bitcoin has faced headwinds in August and historically in
September, it is worth remembering that the cryptocurrency has
demonstrated resilience and the ability to recover from downturns
in the past. Market conditions, macroeconomic factors, and
regulatory developments can all contribute to the price
fluctuations of Bitcoin and other cryptocurrencies. Featured image
from iStock, chart from TradingView.com
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