The price of bitcoin on Monday (11/4/2022) fell below US $ 41,000.
This is the lowest level since March 22 and extends losses from late March highs of $48,240.
In fact, the decline continued as Luna Foundation Guard (LFG) added $173 million in Bitcoin to its wallet over the past weekend, increasing its total holdings to nearly 40,000 BTC.
However, traditional investors are refusing to follow LFG’s lead, given some of the economic and political uncertainties lurking in riskier assets, according to Noelle Acheson, Head of Market Insights Genesis Global.
“Overall, it’s more of a market uncertainty, macro concerns, and a focus on what interest rates are going to do,” Acheson told CoinDesk.
The US Dollar Index (DXY), which tracks the greenback’s value against a major currency, touched a two-year high, above 100 on Monday (11/4), bringing this year’s gain to 4.3%, according to TradingView data.
According to Kevin Kelly, Co-Founder and Global Head of Macro Strategy at Delphi Digital, the US dollar and Bitcoin have a fairly inverse correlation.
“2017 was one of the worst years for the dollar, and it coincided with a big move in Bitcoin,” Kelly said, as quoted by CoinDesk. “The increase in the price of Bitcoin in early 2021 was caused by the weakening of the dollar”.
Griffin Ardern, volatility trader at Blofin, says, “when DXY has hit a high and is rising further, it usually indicates further declines in other assets, whether it’s the stock market, crypto or FX” “.
Referring to CoinMarketCap data on Monday (11/4) at 21:40 WIB, Bitcoin price was at US$ 40,879.11 or down 4.12% in the last 24 hours and fell 11.41% for the week.
At this stage, however, buying some BTC can be profitable to some extent.
Implied volatility remains near all-time lows and has not seen any significant gains in response to recent price declines,” Ardern said.
“However, once there is turbulence, either from a volatility perspective or a price direction perspective, the chances of making a profit increase significantly,” he said.
From a technical standpoint, the 14-day relative strength index has entered bearish territory below 50, supporting a continued decline in prices.
“On the support side, buying activity has concentrated around the $40,000 level, where 820,000 BTC was previously earned, making this a price to watch out for,” Lucas Outumuro, Head of Research IntoTheBlock, said in a statement to CoinDesk. (SS Kurniawan)