Bitcoin and Crypto are on the rise!
The price of Bitcoin remains the dominant trend-setter in the cryptocurrency industry. The cryptocurrency market is back in the black today, after all, altcoin values fell alongside Bitcoin yesterday, reaching a low of $29,173.
At the time of publication, the price of Bitcoin had surpassed the key resistance level of $29,800 once more. BTC has gained 2.7% since yesterday’s low and is now trading above $29,900. In terms of price growth, Avalanche (AVAX), Chainlink (LINK), and Arbitrum (ARB) are a few altcoins that are exceeding Bitcoin’s upward trend.
Why Are Bitcoin and Crypto Up Nowadays?
According to NewsBTC, the price adjustment for Bitcoin from yesterday could be interpreted as a technical consolidation. According to the medium-term macroeconomic outlook, the case for a sustained advance in Bitcoin and the entire crypto market is extremely compelling.
The macro data from China, among other things, may have aided today’s rally. According to data released this morning, China’s GDP rose at its fastest rate in a year, 4.5%, in the first quarter of 2023.
A surge in consumer spending and manufacturing output following the completion of “Zero COVID” also contributed to the faster-than-expected increase. The data were all positive. Gross Domestic Product (GDP) (YoY) grew from an expected 4.0% to 4.5% in Q1 2023.
Retail sales climbed by 10.6% year on year in March, exceeding the 7.4% projection. The unemployment rate was 5.3%, compared to a forecast of 5.5%.
It’s also possible that the US dollar index (DXY) fueled the rally. Bitcoin and the DXY have an inverse relationship, so when the DXY falls, Bitcoin usually rises.
The DXY has been under substantial pressure in recent weeks, but there was a tiny relief rally on Friday that helped push the index from 100,807 to 102,207. The DXY is once again showing signs of weakness today, sliding to 101,603.
Bitcoin OR DXY: What’s Next?
In light of this, Glassnode co-founders Jan Happel and Yann Allemann refer to the current Bitcoin movement as a “shallow correction,” which is an indication of a significant bull market rally. Analysts believe that the price could fall to $25,000 in the near future.
However, considering Bitcoin’s rapid rise to $30k, this has not occurred. “This is a very clear indication of the strength of momentum, which will lead to higher prices,” write Happel and Allemann.
We picked $35k as the next important aim prior to $47k. This remains our forecast, and we expect significantly higher pricing in the late second and third quarters. However, we must evaluate what might happen to Bitcoin if the DXY falls to 105-107.
The DXY is expected to be in the 91-93 range by the end of the year, according to the two analysts. Based on Elliott wave theory, they do foresee an early rebound to the upside:
DXY is expected to reach 105.8 or maybe 107.2 before rolling over. A credible dip below 100 would seriously call this setup into doubt.