The dollar is seeing a major bounce right now which is pushing assets down that are priced in dollars
A big part of the bitcoin story had to do with a weakening dollar, in fact some wouldn't have even described it as weakening, they'd call it tanking.
For months and months now the dollar has been moving lower on a consistent basis with few bounces along the way.
Well, we just got a major bounce in the dollar.
Check it out:
It's still early, but so far this is one of the bigger bounces in the dollar since March of last year.
Bitcoin and stocks both sold off as the dollar moved higher.
Where do we go from here?
Bitcoin briefly touched $30k and found some decent support there, some might be tempted to jump in at that level, especially since it has marked about a 27% drop the all time highs...
However, we may still have a bit lower to go.
I think the dollar is likely to bounce a bit more over the coming days and weeks which will further be a headwind for bitcoin.
In the medium term though I think we are going to get another stimulus plan approved which is going to put pressure on the dollar again.
So, while we are likely to have a higher dollar price in the near term, it's likely to be short lived as the dollar eventually heads back down and makes new lows.
We may see bitcoin go below $30k in the coming days/weeks and that is where I will be buying it.
I would be shocked if it goes below $25k though, so we are not too far from where I think the eventual bottom will be.
Stay informed my friends.
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