Bitcoin Price Faces 200-Week Trendline as US Dollar Hits 6-Month High

Bitcoin (BTC) is currently testing a crucial long-term trendline as the US dollar strengthens to its highest level in six months. This development is stirring concerns among market participants and making them more cautious about Bitcoin's future price movements.

Bitcoin vs. 200-Week Moving Average Forms "Million Dollar Question"

According to data from Cointelegraph Markets Pro and TradingView, BTC price has been hovering around the $25,700 mark. While the market has been relatively stable, a drop to $26,000 and lows below $25,400 were observed in the previous day.

Traders and analysts have differing opinions on Bitcoin's next move. Popular trader TraderSZ commented, "Unless we reclaim May low, I still think lower." They took a short position and are targeting $23.6k, with plans to scale out if May's low is reclaimed.

Michaël van de Poppe, founder and CEO of trading firm Eight, highlighted the significance of the 200-week exponential moving average (EMA) at $25,670. He described it as the key level to monitor on weekly timeframes.

Toni Ghinea, another trader and analyst, expressed a more definitive view, predicting a drop to $25,000 and lower for Bitcoin. Ghinea also expected altcoins to suffer. He emphasized the ongoing battle for the launch of the first Bitcoin spot price exchange-traded fund (ETF) in the US, which has influenced low-timeframe volatility in recent weeks.

Dollar Stokes Concerns for Crypto and Risk Assets

The US dollar's recent strength is causing concerns for crypto and other risk assets. The US dollar index (DXY) reached 105.15 on the day, its highest level since March 10, after surpassing local highs from late May.

Analyst Benjamin Cowen believes that the dollar's rally will continue to put pressure on risk assets, particularly cryptocurrencies. TraderSZ also predicts downside for US equities as a result of the strong US dollar.

Caleb Franzen, a senior analyst at Cubic Analytics, pointed out the bullish price action of the US Dollar Index DXY. He believes it is bearish for financial assets and emphasized the significance of breaking above the 200-day moving average cloud and the trendline from 2022 highs.

Note: This article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.