Bitcoin price hits 1-week low as US dollar currency index aims higher

Renewed bullish behavior in DXY spells trouble for inversely correlated BTC/USD, underscoring the relationship between the two indices.

Bitcoin (BTC) reacted to fresh strength in the U.S. dollar on Sep. 21 to follow stocks downward and move away from $11,000.

Cryptocurrency market daily snapshot, Sept. 7

Cryptocurrency market daily snapshot, Sept. 7. Source: Coin360

DXY surge spells BTC price weakness

Data from Coin360 and Cointelegraph Markets showed BTC/USD hitting lows of $10,570 on Monday, its lowest in a week.

Sunday saw a rejection of resistance at $11,200, with Bitcoin subsequently shedding around 3% on the day as macro markets wobbled at the open. At press time, BTC/USD hovered at just above $10,600. 

BTC/USD 1-day price chart

BTC/USD 1-day price chart. Source: Coin360

As Cointelegraph reported, a basket of factors — coronavirus, central bank economic policy and a separate scandal involving major institutions — is creating uncertainty this week. 

The $11,200 rejection was anticipated by Cointelegraph Markets analyst Michaël van de Poppe, who warned that Bitcoin was unlikely to find the strength to flip the previous support level back from resistance.

At the same time, DXY edged past 93 on Monday, with Bitcoin’s corresponding fall characterizing continued inverse correlation.

U.S. dollar currency index 1-week hourly chart

U.S. dollar currency index 1-week hourly chart. Source: TradingView

Keep track of top crypto markets in real time here
Publication date: 
09/21/2020 - 14:50

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.