Could Bitcoin’s Rally Be Short-Lived Amid Dollar Gains?

A crypto analyst, known as Bluntz, is cautioning that the recent market uptick might be a deceptive bull trap.

He suggests Bitcoin is showing bearish tendencies in the short term after failing to break past a key Fibonacci resistance level.

gut is telling me these early week crypto pumps might have been a trap.

had a good look at dxy and es today and gave myself a bit of a reality check.

weekly divs on both were confirmed and btc so far rejecting from the 0.618 fib pic.twitter.com/91J1XsLmlR

— Bluntz (@Bluntz_Capital) October 7, 2024

Fibonacci retracement levels help traders spot possible price support and resistance zones. Bluntz expressed concerns, hinting that the early-week gains across the crypto space could be misleading.

He noted that Bitcoin has struggled near the 0.618 Fibonacci retracement level, while other financial indicators like the US dollar index (DXY) and S&P 500 E-mini futures are pointing to potential downward pressure.

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Bluntz pointed out that the DXY, which tracks the US dollar’s strength against other major currencies, has shown bullish signs on its weekly chart.

Historically, a rising DXY tends to negatively impact risk assets like Bitcoin and stocks, signaling that some investors may be shifting away from these assets in favor of the dollar.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.