Bitcoin Resists Onslaught of Dollar StrengthsteemCreated with Sketch.

in #bitcoin4 days ago

The world's leading cryptocurrency faces challenges as long-term investors increase their holdings.

The price of bitcoin remained virtually stable, closing at $94,536 after a slight decline of -0.01% amid the growing strength of the dollar and economic uncertainty. Market volatility is intensifying as US inflation data approaches.

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Bitcoin's close left a "dragonfly" doji candle, indicating that buyers defended the support at $94,400 / TradingView

Bitcoin's Fall and Recovery

On Monday, bitcoin experienced a significant drop at the start of the day, reaching a low of $89,256 before recovering ground and stabilizing at $94,536. The fall of bitcoin is mainly attributed to the strength of the dollar. The US currency reached a two-year high on the DXY index with 110.17 points. The dollar's revaluation occurs in a context of speculation about the Federal Reserve's (FED) interest rate policies for 2025.

Key factors impacting the market

Expectations around inflation data in the United States, with the Producer Price Index (PPI) scheduled for this Tuesday and the Consumer Price Index (CPI) on Wednesday, are causing concern among investors. Rising inflation could lead the FED to reconsider its rate cut plans for this year. On the other hand, if inflation remains below expectations, the door could be opened to further cuts, although not for January.

Long-term investors increase their balances

Despite the volatility, long-term bitcoin investors, known as "cruisers", increased their holdings to 5.72 million BTC. This is the highest figure in the last 12 months. In contrast, short-term investors have seen their holdings shrink from 2.68 million BTC to 1.89 million BTC since the start of 2025.

Technical Analysis and Future Outlook

Bitcoin's close left a "dragonfly" doji candle, indicating that buyers defended the support at $94,400. This is a dynamic level formed by the 50-day exponential moving average. However, the pressure from sellers intensified, with a negative Spot CVD of -$218.48 million. If the support at $94,400 is broken, Bitcoin could fall towards the next dynamic support. Bitcoin could record a drop to the next level of $78,600 in the coming sessions.

Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Investors are advised to conduct their own research and analysis before making investment decisions.

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