For the first time in 3 years, Bitcoin is managing to close the month with profits. In addition, crypto currency is leading the crypto market, awakening the rise in various currencies. Therefore, you can expect a very interesting month of September.
However, it is necessary to know the factors that have driven this behavior of the crypto market. There is one particular element that has a great influence, due to its magnitude and power, and that is the United States.
Expectations of a rise in inflation in the US have been reactivated, after the Fed announced a change in the entity’s position with regard to the inflation target, which is now 2% per year.
Jerome Powell, President of the FED, indicated last Friday that some inflationary periods will be encouraged, and admitted that the liquidity injection measures did not turn out as expected.
With this scenario, which we don’t know how far it will go, the assets that serve as coverage will continue to gain ground, and Bitcoin has proven to be quite attractive to investors who are looking for this quality.
Meanwhile, the US dollar index is resuming its medium-term downward trend, and it’s quite likely that the decline will be accentuated this week, with the loss of immediate support at 92 points.
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Technical analysis of Bitcoin price
Since Bitcoin has more than 60% dominance over the crypto market, analyzing its price is always the best way to get an overview of the ecosystem, and thus predict what might happen.
From the weekly BTC vs. USDT chart we observe a strong upward trend in the medium term, supported by the 8-week EMA and 18-week SMA moving averages crossed in an upward manner.
After the offer found at the resistance at $12,330, the price began a correction. The candle we just saw close formed an important positive signal, through a bullish hammer that may be marking the end of the retracement.
At the moment we are observing how Crypto Genius is resisting a deeper retracement. However, there is still a risk of a further decline.
Joel Kruger, strategist for LMAX Digital, says Bitcoin could fall at the same time as the stock market does. Because it is an emerging asset, it can be very affected in those periods, where investors seek to decrease exposure to risk.
The short-term trend of the BTC price is still down, but it’s being challenged right now. Crossing the $11,748 resistance is what the bulls need to take control.