empty
 
 

Forex Analysis & Reviews: Investors choose Bitcoin amid problems with fiat: what to expect from BTC next?
time 29.09.2022 11:26 AM
time Relevance up to, 30.09.2022 10:07 AM

There is a gradual redistribution of capital in the global financial markets. The cryptocurrency market is attracting more and more attention from investors all over the world due to the worsening overall economic situation.

Aggressive rate hikes by the central banks are rolling around the world, which leads to a lack of liquidity. At the initial stage of this process, high-risk assets and Bitcoin were the losers, but the situation is starting to change.

Economic factors

UK banks stopped issuing mortgage loans, which caused a negative reaction of the markets at the moment. It also led to the continuation of the upward trend of government bonds and had a negative impact on US government bonds. Stock indices and Bitcoin continued to decline as the policy of the UK central bank led to an increase in DXY.

This image is no longer relevant

However, analyst James Butterfill later noted the growing trading volumes of BTC/GBP. The indicator reached the level of $881 million with average values around $70 million. There is a growing investor demand for Bitcoin amid unabated inflation and the onset of a recession.

This image is no longer relevant

Santiment experts confirm a general increase in trading activity in the cryptocurrency market. Bitcoin trading volumes also reached their highest level since June 14, indicating some changes in the market and the emergence of a serious buyer.

DXY&SPX

At the same time, the crypto market is waiting for the start of a correction in the US dollar index, which should provoke a rally in Bitcoin and other digital assets. As a result of September 28, DXY formed a bearish engulfing, but technical metrics point to a resumption of bullish momentum.

This image is no longer relevant

The S&P 500 managed to form a bullish engulfing pattern on September 28, which directly indicates an inverse correlation with the DXY. Technical indicators of the stock index signal the beginning of an upward movement of the indicator. However, given the similar signals on the DXY, one cannot be completely sure about the upward movement of the SPX price.

This image is no longer relevant

BTC/USD Technical analysis

Bitcoin continues to move within the $18.5k–$20.5k range. The cryptocurrency shows impulse attempts to go beyond this range in order to resume movement in a wider area. Technical metrics remain weak and indicate a flat price movement.

This image is no longer relevant

The current situation around Bitcoin is completely tied to the SPX movement and the situation with US and UK government bonds . The cryptocurrency is still pulling towards the $20k mark, but there are no clear signals to play short or long. The $18.5k–$20.4k range is a raging storm, so we can expect movement in either direction.

If the $20.4k level is broken, the path to the $22.8k–$23k range will open for Bitcoin. However, for now, this scenario is unlikely, as SPX buyout volumes remain low, and therefore the movement of the cryptocurrency will be constrained by the stock index.

Conclusions

Bitcoin and the cryptocurrency market are actively reacting to world events. The situation with UK banks is a clear proof of this. In the near future, we should expect an improvement in the overall situation for digital assets due to the correction of DXY and the aggravation of recession processes.

Markets are reaching dangerous levels when rates are raised to record highs, but inflation continues to rage. The case with BTC/GBP trading volumes could be a prelude to a massive flow of capital into cryptocurrencies. However, this process will take time and will not be completed in the coming weeks.

Artem Petrenko,
Chuyên gia phân tích của InstaForex
© 2007-2022
Benefit from analysts’ recommendations right now
Top up trading account
Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.

Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Giao dịch khôn ngoan, thành công
    Nạp tiền vào tài khoản của bạn với ít nhất $ 500, đăng ký cuộc thi và có cơ hội giành được các thiết bị di động.
    THAM GIA CUỘC THI
  • Ferrari từ InstaForex
    Nạp tiền vào tài khoản của bạn với ít nhất 1.000
    tham gia cuộc thi và giành chiến thắng Ferrari
    F8 Tributo
    THAM GIA CUỘC THI
  • Tiền gửi lần truy cập
    Gửi vào tài khoản của bạn 3.000 đô la và giành được 1.000 đô la
    THAM GIA CUỘC THI
  • 100% tiền thưởng
    Cơ hội duy nhất của bạn để nhận 100% tiền thưởng khi gửi tiền
    NHẬN THƯỞNG
  • 55% Tiền thưởng
    Đăng ký tiền thưởng 55% cho mỗi lần gửi tiền của bạn
    NHẬN THƯỞNG
  • 30% tiền thưởng
    Nhận 30% tiền thưởng mỗi khi bạn nạp tiền vào tài khoản của mình
    NHẬN THƯỞNG

Recommended Stories

Technical Analysis of ETH/USD for December 8, 2022

Crypto Industry News: In the US, there is a debate on the regulation of the cryptocurrency market. The bill currently being drafted by Senator Elizabeth Warren aims to transfer control

Sebastian Seliga 09:24 2022-12-08 UTC+2

Technical Analysis of BTC/USD for December 8, 2022

Crypto Industry News: Fabio Panetta, a member of the board of the European Central Bank (ECB), has proposed that the European Union (EU) ban cryptocurrency assets whose issuance

Sebastian Seliga 09:24 2022-12-08 UTC+2

BTC update for December 08,.2022 - Potential completion of the ABC downside correction

Technical analysis: BTC/USD has been trading sideways at the price of $16.800/ Anyway, I see potential for the upside movement due to the potential completion of the downside correction. Trading

Petar Jacimovic 08:36 2022-12-08 UTC+2

Short-term technical analysis on Bitcoin for December 7th, 2022.

Bitcoin is trading below $17,000. Price is challenging the upward sloping support trend line. Bulls do not want to see price break below $16,700 as this would be a sign

Alexandros Yfantis 15:14 2022-12-07 UTC+2

Bitcoin made a bearish breakdown of the $17k level: what does it mean and what to expect next?

Bitcoin managed to take advantage of the activation of buyers over the weekend and consolidated above $17k at the beginning of this week. In parallel with the price

Artem Petrenko 13:01 2022-12-07 UTC+2

Technical Analysis of ETH/USD for December 7, 2022

Crypto Industry News: Some time ago we reported that the then Prime Minister of the UK government, Liz Truss, intends to regulate the crypto market. However, it turned out that

Sebastian Seliga 11:47 2022-12-07 UTC+2

Technical Analysis of BTC/USD for December 7, 2022

Crypto Industry News: Difficult market conditions continue to affect the Bitcoin ecosystem, with mining difficulty dropping by its highest level since July 2021. The difficulty adjustment of 7.32% took place

Sebastian Seliga 11:46 2022-12-07 UTC+2

BTC update for December 07,.2022 - Test of the gap support

Technical analysis: BTC/USD has been trading downside towards the price of $16.800. Anyway, I see strong gap zone on the test, which can be zone for the buyers to join

Petar Jacimovic 09:14 2022-12-07 UTC+2

Bitcoin is losing its local bullish potential amid sellers' activity: should we wait for BTC to fall?

Over the past week and a half, the main cryptocurrency has formed a solid, albeit local uptrend. Buyers bought off the local bottom near the level of $15,600, afterwards

Artem Petrenko 22:43 2022-12-06 UTC+2

Bitcoin: upside pressure intact above 16,783

Bitcoin dropped after reaching 17,418 yesterday. It has dropped by 2.89% from this level to 16,914 today's low. Still, the current drop could be only a temporary one. Technically

Ralph Shedler 21:01 2022-12-06 UTC+2
Không thể nói chuyện ngay bây giờ?
Đặt câu hỏi của bạn trong phần trò chuyện.