Mixed Trading for Major Cryptocurrencies as Dollar Remains Flat
Major cryptocurrencies experienced mixed trading on Wednesday as the US dollar remained relatively flat. Bitcoin (BTC) saw a 0.80% increase, trading at $25,879.58, while Ethereum (ETH), Tether USDt, BNB, USD Coin, and XRP also made gains of up to 0.69%. However, other tokens like Cardano, Dogecoin, and Solana saw declines of up to 1.07%. ETH traded at $1,582.98, up 0.33%, while Dogecoin dropped by 0.17% to $0.06067.
Inverse Relationship Between Cryptocurrencies and US Dollar
Cryptocurrencies tend to have an inverse relationship with the US dollar. The dollar index currently sits at 104.67 with a slightly negative bias. Over the past seven days, Bitcoin has gained 0.57% while ETH has fallen by 2.28%, according to Rajagopal Menon, Vice President at WazirX. Menon also highlighted various moving average indicators for BTC, suggesting buying opportunities at $25,858 and selling opportunities at $27,005 and $27,655.
Bitcoin Spot ETF Race and Growing Trust in Bitcoin
Edul Patel, CEO & Co-Founder of Mudrex, attributes the surge in Bitcoin above $25,900 to renewed interest in the Bitcoin Spot ETF race. Franklin Templeton, a major asset management player, recently submitted an application to the US SEC, which likely contributed to positive market sentiment. Additionally, Patel mentioned that the number of wallets holding 0.1 BTC reached an all-time high of 12 million, indicating growing investor trust in Bitcoin. Meanwhile, Ethereum continues to trade around the $1600 mark.
Top Gainers and Losers in the Cryptocurrency Market
Among the top gainers in the market, MKR rose by 125%, followed by OMG with a 35% increase, ZIL with 26%, REEF with 10%, and BTG with an 8% gain. On the other hand, the biggest losers included ENS (down 69%), WAVES (down 64%), COTI (down 38%), GNS (down 28%), and REP (down 26%), according to Sathvik Vishwanath, Co-Founder & CEO of Unocoin.
Bullish Trend for Bitcoin with Key Support and Resistance Levels
Vishwanath stated that Bitcoin’s technical analysis reveals a strong bullish trend. Key technical indicators such as the Relative Strength Index (RSI) and Moving Average of Convergence (MACD) indicate a favorable buying zone. The 50-day exponential moving average also supports a continued bullish trajectory as long as Bitcoin remains above $25,600. However, a decline below this level could test support at $25,400 and the critical $24,950 level. Conversely, a break above the $26,500 resistance may target the $27,000 and $27,500 levels.
Hot Take: Cryptocurrencies Experience Mixed Trading Amid Flat Dollar
In today’s trading, major cryptocurrencies had a mixed performance as the US dollar remained relatively unchanged. While Bitcoin and several other tokens saw modest gains, others experienced declines. This indicates the ongoing volatility and unpredictability of the crypto market. Additionally, the relationship between cryptocurrencies and the US dollar continues to be inversely correlated. Looking ahead, factors such as the Bitcoin Spot ETF race and growing investor trust in Bitcoin may impact the market’s future direction. Traders and investors should closely monitor key support and resistance levels, as well as technical indicators, to make informed decisions.
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