On Saturday, Bitcoin reached a high of $20.9k and the market’s leading cryptocurrency has been rising all week as a result of recent encouraging macroeconomic statistics that have revived the stagnant sector. Indicating that the market is also exhibiting signs of life, the total market capitalization of the cryptocurrency industry as of writing stands at $990 billion, an increase of more than 4% from the day before.
While still benefiting from declining inflation, Bitcoin reached a high of $21,000 before reverting. The 200-week EMA at about $25,000, or a 20% increase from the present price levels, appears to be Bitcoin’s next upward goal.
Traditional markets also experienced gains for the week. The optimism has been boosted by the first monthly decrease in inflation in 2.5 years as well as more significant annual drops in both the headline and core readings.
Since March 2020, the US dollar and bitcoin have largely traded in opposition to one another. According to TradingView, as of January 16, there was a -0.83 daily correlation coefficient between Bitcoin and the U.S. Dollar Index (DXY), a measure of how strong the dollar is relative to the top competing currencies.
When an asset’s 50-period moving average crosses below its 200-period moving average, the scenario is known as a “death cross.” The death cross for the dollar reveals its waning momentum, indicating that its short-term trend has lagged behind its long-term trajectory.
As of now in 2023, Bitcoin has surged 30% beyond $20,000, but on-chain data reveals that institutional investors are not supporting the buying trend. According to CryptoQuant’s Fund Holdings index, the total quantity of Bitcoin held by holdings of digital assets such trusts, exchange-traded funds, and other funds has been decreasing amid the coin’s price surge in recent months.