Bitcoin faces a key test from a strong dollar and falling stock markets

According to one analyst, Bitcoin’s potential to re-cross the $69,000 barrier this week is crucial to confirming the strength of the entire crypto market.
The bearish performance of the U.S. stock market and the strength of the U.S. dollar have created chaos in crypto asset prices.
Bitcoin (BTC), in particular, has fallen 1.28% over the past day, leading to an overall downtrend in its seven-day performance. This caused the valuation of the entire crypto market to fall by 1.28% to $2.31 trillion.
With the price of Bitcoin approaching $66,000, it is now at a critical point that could influence its next move.
Some market observers are watching Bitcoin’s behavior from its current position. Some analysis has focused on Bitcoin’s short-term exponential moving averages (EMAs).
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Bitcoin needs to break highs of $69,000 this week
Specifically, widely followed Bitcoin analyst Skew suggested that Bitcoin needs to establish a high above $69,000 by the end of this week to sustain its bullish trend. According to the expert, such a potential surge would validate the strength of the ongoing bullish trend in the market.
Meanwhile, the analyst identified $66,500 as the main defense line for Bitcoin. A drop below this level could activate the second support at $65,000. If these support levels fail to hold, the price of Bitcoin could drop to $61,065, which is a critical control point.
Bitcoin shows strength against strong dollar
Meanwhile, a number of macroeconomic factors, such as rising inflation indicators, falling U.S. stocks, a rising dollar, political uncertainty, and concerns about U.S. financial policies, have been influencing Bitcoin’s price action recently.
Interestingly, the leading crypto asset has proven resilient against the U.S. dollar, with the U.S. Dollar Index (DXY) up 3.4% so far this month.
Typically, such growth would weaken cryptocurrency prices. However, Bitcoin has proved resilient against the U.S. dollar, gaining 5% so far this month.
What’s next for Bitcoin?
Meanwhile, market watchers are closely watching the price of Bitcoin to see if it can hold above key levels for the rest of the week.
Bitcoin bulls hope that Bitcoin can hold support at $66,500 to increase the likelihood of breaking through this week’s resistance at $70,000.
Conversely, the bears will aim for further declines that could push Bitcoin to the $65,000 or $61,065 support levels. The current price of Bitcoin is $67,053, down 9.44% from its all-time high of $73,750 set on March 14, 2024.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article may contain the personal opinions of the author and do not reflect the views of The Crypto Basic. Readers are encouraged to perform thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.