Strengthening the dollar; Negative sentiment in the digital currency market continues

Although the price of bitcoin has risen slightly, Atrium and most of the digital currency market instruments have fallen further; Investors continue to infer from the Fed’s statement at Wednesday’s meeting that a tight (contractionary) monetary policy is to be adopted.

To Report Kevin Desk continued to decline on Thursday after remarks by US Federal Reserve Chairman Jerome Powell. Stock market prices also fell, with market participants believing that the central bank would raise interest rates more than four times this year.

At the time of writing, the largest digital currency on the market is priced at around $ 37,000, which has risen slightly over the past 24 hours; But it still has a significant drop from last week’s price. Atrium, the second largest digital currency in terms of market value, continues to lose value over the same period and is now trading at around $ 2,400. The diagrams of most of the main quinces are also red.

The US dollar strengthened as digital currencies fell. At the time of writing, the US dollar index (DXY) was up 0.79 percent from the previous day at 97.2.

The strengthening of the dollar often leads to lower prices for digital currencies. In the past, bitcoin and the dollar index have moved in opposite directions. This negative correlation between the value of the dollar and digital currencies became more pronounced last July.

According to the information received, the volume of bitcoin transactions in the main exchanges of digital currency has reached its lowest level in the last week overnight.

But the talk these days on Twitter is the news about Wonderland, a popular decentralized financial protocol (DEFI). It has recently been revealed that one of the directors of Wonderland is Michael Patryn, one of the founders of QuadrigaCX. The famous Canadian exchange recently swindled more than $ 190 million from its investors. Following the news, the Frog Nation, which is a collection of protocols including Wonderland and is managed by Daniele Sestagalli, the famous developer of Defy, came under fire.

At the time of writing, Wonderland was down more than 25 percent at $ 396. The price of Spell, another digital currency in the Fragment Collection, also dropped significantly.

technical analysis

As the chart below shows, Bitcoin is facing a $ 40,000 resistance barrier and is encouraged by its $ 33,000 support.

In the last few days, Bitcoin has not been able to maintain its growth trend from $ 32,900 to $ 39,000. In daily views, digital currencies have limited trades and technical indicators are mostly neutral in the short run.

Also read: What is Price Action; Price Action Trading Training

Bitcoin price behavior in the 4-hour view indicates strong sales; Because the price has remained below the 100-day moving average over the past few weeks. Over-selling signals usually appear before the slight increase in prices, which, given the continuous downward trend of bitcoin prices from November to November, is expected to be a limited upside expectation of bitcoin prices.

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Buyers are likely to call everyone who looks appropriate, if there are only a few.

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