U.Today

Historically, the U.S. cryptocurrency market performance and the Dollar Index (DXY) have a pronounced negative correlation. Rallying in Bitcoin and other cryptocurrencies was frequently the result of a decline in the DXY. This relationship is logical since declining dollar values usually cause investors to seek alternative assets like cryptocurrency.

However, the current market situation appears to be breaking this pattern. The DXY has dropped significantly and has recently reached all-time lows, creating an expectation that Bitcoin and the larger cryptocurrency market may rise sharply in response.

This break could be attributed to the dynamic nature of the cryptocurrency market itself, which has become increasingly complex with various influencing factors beyond just the DXY. Today’s cryptocurrency prices are significantly impacted by regulatory changes, market sentiment, and macroeconomic uncertainty.

Additionally, a cautious market attitude might contribute to this shift. Recent volatile regulatory actions and ongoing concerns about the global economy’s stability have made investors wary of riskier assets like cryptocurrencies. The excitement typically generated by a declining DXY may be subdued by this cautious approach.

Shiba Inu Finally Hits Resistance

Shiba Inu has hit the 26-day Exponential Moving Average (EMA), a key resistance level that traders are closely monitoring. This is the first significant hurdle that SHIB must overcome to maintain its upward movement and potentially pave the way for future gains.

The recent successful break above the $0.000014 price level, which acted as crucial support and fueled the current rally, has led to this resistance level. The breach has instilled optimism among traders and SHIB holders, suggesting that the cryptocurrency may be poised for further upward movement.

Nonetheless, the 26 EMA presents a substantial obstacle. This moving average has accurately predicted trend continuations or reversals in the past. Should SHIB manage to surpass this resistance, a sustained uptrend may commence. Conversely, failure to breach this level could result in a retreat or consolidation, exposing SHIB to additional downward pressure.

Recent increases in trading volume and renewed interest from the crypto community have contributed to cautiously optimistic market sentiment regarding Shiba Inu. The price could rise further if the 26 EMA is successfully breached, attracting more buyers. However, this resistance level could also act as a rejection point that halts the rally temporarily, requiring traders to approach with caution.

Is Bitcoin Topping Out?

Bitcoin may be on the verge of forming a local double top pattern, which typically signals a bearish market reversal. Traders often interpret this pattern as a warning sign, indicating that the recent bullish rally could be nearing its end, and a price retracement at current levels may follow.

A double top occurs when the price of an asset reaches a certain level, pulls back, rises back to the same level, and then declines again, resulting in two roughly equal peaks or tops. This pattern is emerging for Bitcoin at the $62,000 mark, which has consistently acted as resistance. The potential emergence of this double top pattern could concern Bitcoin supporters, suggesting insufficient buying momentum to push prices higher.

Investors should remain cautious and closely monitor price actions, as a break below the double top’s neckline—the level where the two peaks converge—could trigger additional selling pressure. Although it is premature to firmly state that a double top has formed, market reactions are aligning with expectations.

This article was originally published on U.Today