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Analyst: Recovery of the Dollar is Adding Pressure on Bitcoin

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Bitcoin (BTC) has recently fallen from around $12,450 to below $10,000 for a brief period of time. Some analysts consider that Bitcoin’s recent price drop could be related to the recovery of the U.S. Dollar (USD), which has strongly devaluated since May this year. 

Recovery of the Dollar Could Add Pressure on Bitcoin

According to a recognized anonymous crypto analyst and trader on Twitter, Bitcoin could be moving towards a four digits zone. However, he considers that there is pressure building and we could soon have a larger move without a clear direction. 

In addition to it, another trader mentioned that the current situation looks like March this year. At that time, Bitcoin fell from over $10,000 to below $4,000 for a short period of time. This could repeat if the SPX suddenly breaks downwards. 

During a conversation with UseTheBitcoin, Konstantin Anissimov, Executive Director at CEX.IO, stated that this week could certainly indicate whether Bitcoin will continue to fall in the market. Furthermore, he mentioned that the recovery of the U.S. dollar could add pressure on Bitcoin and that traders should closely follow this situation in the market. 

On the matter, he stated:

“This week may indicate whether BTC/USD is going to fall more. Also, the current recovery of the dollar is adding pressure on Bitcoin, which those trading Bitcoin should factor in.”

This should be a warning for users that believe that Bitcoin could continue moving higher in the next few days. Nonetheless, Bitcoin is showing stability in the morning of September 9th. We see Bitcoin continues to be traded between $9,950 and $10,120 in most of the exchanges. 

Bitcoin should remain above $9,950 if it wants to remain afloat rather than continuing its downtrend that started a few days ago. Other virtual currencies are also falling and registering losses in the last 24 hours. All the top 10 with the exception of Binance Coin (BNB) is registering losses. 

Ethereum (ETH), XRP, and Litecoin (LTC) are falling by 2.30%, 1.38% and 2.04%, respectively. This shows how the entire market is being affected by a sell off that is not clear when it could end. Despite this recent price drop, Bitcoin and crypto analysts remain bullish for the long term and consider that the entire crypto market could move towards new highs and Bitcoin reach its previous record from 2017. 

Jonathan Gibson

Jonathan Gibson

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