USD Contributing To Bitcoin Spike, But Analyst Reminds Bear Market Not Broken Yet

USD Contributing To Bitcoin Spike, But Analyst Reminds Bear Market Not Broken Yet

Currently, the Bitcoin market is enjoying the gains as the flagship cryptocurrency sees a surge of about 3 percent and moved upward to the $3,747 level. Today, it surged to the point of $3,758 which is the highest level for February.

Bitcoin Price 1-month chart, Source: Coinmarketcap

The daily trading volume of the leading cryptocurrency is seeing a spike as well as it just about touches $8 billion. This one-month high of Bitcoin could mean a stronger rally and once the flagship cryptocurrency passes the resistance level at $3,760, $4k would be in sight.

Moreover, BTC/USD longs on Bitfinex went upwards as well, which is the highest level since last March, 2018. However, it is still about 7 percent away from reaching the record high. This means the possibility of a sudden drop in price is pretty low.

One of the contributing factor to Bitcoin price rise is USD which in the past 24-hours have taken a dip as Mati Greenspan, a senior analyst at eToro too to Twitter to share, “Worth noting is the higher level of “clean USD” contributing to the pump. BTC and USDT are still dominant but USD (blue) reached near 16% as the markets moved higher.”

DXY Chart, Source: TradingView

Previously, on numerous occasions, market analyst and trader, Benjamin Blunts have called out that “Dxy has topped out now for the next month at least.” Last week he had said, “DXY target hit and now printing a reversal candle. this bodes well for BTC.”

“As a crypto trader, it's important to track the USD as often times they are inversely correlated and move opposites.”

Experts Are Bullish, Strong Volume Supports Spike

As Bitcoin turns green, cryptoanalysts and traders are expecting more upward momentum as Benjamin Blunts shares,

“Pretty much every comment on my tweets: why you so bullish, we haven't even made a higher high yet?!?” BTC makes a higher high: ok maybe you right, I'll long now. Bitcoin then resumes downtrend: “TA doesn't work! and the cycle repeats, sheep are gonna sheep.”

A strong reason to be bullish in the cryptocurrency market, according to Greenspan, is the strong volume the market is currently seeing at $26.19 billion, at the time of writing, as per the data provided by Coinmarketcap.

“Another very healthy sign is that the moves are happening on strong volume. On Feb-8th we saw total volumes across exchanges bottom out at $14 billion. Today this figure is up to $27 billion. Moves that happen on stronger volumes tend to be more meaningful.”

However, he did caution that “the bear is not broken yet” and again we might be registering the gains but are not yet out of the danger.

Bitcoin might not be out of the bear market yet but in the short term as cryptoanalysts and traders are suggesting greens can be expected.

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