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According to data from CryptoCompare, at 12:00 UTC, Bitcoin broke through the $17,000 resistance level for the first time since 7 January 2018 seemingly thanks to a weaker U.S. dollar index (DXY) and market sentiment at “extreme greed” levels.
One hour later, the Bitcoin price reached $17,086. Since then, it has slightly retraced to $16,960, which means that it is up 3.87% in the past 24-hour period.
As for the U.S. dollar index (DXY), which is a measure of the strength of the U.S. dollar against a basket of six foreign currencies, it has been more or less been steadily getting weaker during the current COVID-19 pandemic. On March 20, it was 102.82; currently (as of 13:14 UTC on November 17), it is trading at 92.34, down 0.33% today.
The other thing to bear in mind is that Bitcoin is currently inversely correlated to the U.S. dollar:
Bitcoin is now strongly corrrelated to the dollar. This is not a fluke. Macro traders jumped on the bitcoin as macro asset bandwagon in 2020, and by doing so turned it into one. The market changed. Being strongly bullish both bitcoin and the dollar makes little sense.
— Alex (@classicmacro) October 7, 2020
As for investor sentiment in the crypto community, the Crypto Fear & Greed Index, which is based on an analysis of “emotions and sentiments from different sources”, is currently telling us that we are in “Extreme Greed” category:
Here are what some of the most prominent crypto analysts and traders are saying about Bitcoin’s latest price action:
Buying #bitcoin under 20k is the new buying Bitcoin under 10k, ATH will come sooner than expected
— Lark Davis (@TheCryptoLark) November 17, 2020
Just FYI we are nowhere near mainstream mania. Lotta people are in disbelief at this moment and wondering why they didn’t buy more before this rally. They’ll FOMO back in after ATH. That’s when the mania starts.
— Qiao Wang (@QwQiao) November 17, 2020
I’m glad BTC’s price is not getting covered everywhere. This time it feels less hype, more fundamentals driven, and it us the time and space to focus on the right things—like building. https://t.co/8bDaPgUGUn
— Ian Lee 💭 (@ianjohnlee) November 17, 2020
Featured Image by “GregMontani” via Pixabay.com
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.