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Bitcoin Struggles With Elevated Selling Volumes and Possible Impact of Rising US Dollar Index (DXY)
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According to Mikołaj Zakrzowski, a senior Web3 analyst at cryptocurrency analysis firm Cryptoquant, current market conditions are tilting in favor of the bears.
The analyst pointed out that the selling volume of bitcoin buyers significantly exceeds the buying volume. This type of market constellation has so far proved unfavorable for the flagship digital currency.
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Currently, more market participants are trying to sell bitcoin than buying it, creating an imbalance between supply and demand. When supply is greater than demand, prices tend to fall.
At the same time, Evai CEO Matthew Dixon highlighted concerns that the US Dollar Index (DXY) could break its resistance level.
This breach suggests a stronger outlook for the dollar, which could potentially cause problems for risky assets like Bitcoin and its altcoin peers.
At press time, the world’s largest cryptocurrency is priced at $26,000.22, with a 24-hour trading range between $25,574.72 and $26,183.10. The market capitalization is over 506 billion US dollars.
Despite the bleak technical picture, there are still some signs of hope. Notably, the cryptocurrency’s value remains above a key support benchmark of $25,157, the November 2022 volume weighted average price (VWAP).
Some analysts have also pointed out bullish divergences forming on various bitcoin charts, suggesting a possible upside in the price.
While there are indications of potential headwinds for Bitcoin and other cryptocurrencies, some experts believe there is room for a bullish trend reversal.
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