Bitcoin price failed to turn the $33K level to support. Altcoins weakened. Bitcoin (BTC) price remained below $33,000 on July 9 and this new price decline ended the strengthening in altcoin prices. According to data from TradingView, the BTC/USD pair broke below the previous support level on Friday.
Earlier in the week, $33,000 was a multi-tested support area. This value then witnessed a short-term support and resistance exchange. Bitcoin failed to recover this price and every attempt to rally was rejected.
At the time of publication, the largest cryptocurrency was trading at around $32,700. Popular trader Crypto Ed said that it is necessary to look at macro factors to determine what will happen next in Bitcoin price.
The US dollar is particularly important. There is upward movement in the US dollar index (DXY), which is currently at 92.4. This value must fall first for the crypto markets to breathe.
“For crypto to strengthen, DXY is a data to be considered… DXY cannot strengthen until it sees a red drop and goes into a downtrend. It is about $94 right now,” he wrote.
As Cointelegraph frequently reports, the strength of DXY is putting price pressure on Bitcoin. However, the reverse correlation cannot be said to work perfectly, as multiple exceptions were observed in the past year.
When Bitcoin falls, altcoins stop
Gains in altcoins have dwindled with the drop in Bitcoin price. The top fifty cryptocurrencies by market cap lost overnight, unlike previous strength. The largest altcoin, Ethereum (ETH), followed a sideways course despite the excitement generated by the highly anticipated London hard fork.
As noted by trader and analyst Rekt Capital, price action is still targeting sub-$2,000 levels and is likely to go “along” with the overall uptrend in 2021. Commenting on Thursday, he said there was “a lot of combined support in the $1,850 to $2,000 area.”
The ETH/BTC pair lost strength on its way to the 0.070 level. Analysts thought there would be major resistance around 0.075 BTC, but up to that point there was no bullishness.
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