Originally published on: November 14, 2024
As the United States dollar reaches year-to-date highs, concerns arise about the impact on the current Bitcoin bull run. Real Vision’s chief crypto analyst, Jamie Coutts, has advised traders to approach the market with care and avoid overly speculative bets.
Coutts highlighted the negative correlation between the USD and Bitcoin’s price, signaling sensitivity to short to medium-term momentum shifts. He emphasized the need for caution with leveraged trading, urging traders to be mindful of the risks involved.
While Coutts remains bullish on Bitcoin’s long-term outlook, he warns of potential challenges in the short term due to the strengthening US Dollar Index (DXY). Since November 6, the DXY has risen by 3.18% following the US presidential election, impacting Bitcoin’s upward trajectory.
Despite Bitcoin’s 28% price increase during the same period, the surge in safer assets like the dollar raises uncertainty for traders. The historical inverse relationship between Bitcoin and the dollar adds complexity to the current market dynamics.
Coutts highlighted the significance of the DXY resistance level, suggesting that a breakout could spell trouble for risk assets. However, positive developments from institutions like the US Federal Reserve or the Central Bank of the People’s Republic of China could potentially reverse this bearish trend.
It’s essential for traders to conduct thorough research and exercise caution in this volatile market environment. While uncertainties loom, strategic decision-making and risk management are crucial for navigating the evolving landscape of digital assets.
