Coin Bureau Trading
This video discusses how the dollar affects Bitcoin and the cryptocurrency market, and how gold correlates with them. Understanding the fundamentals and technicals of the dollar can give traders an edge. The video also explains how news and macroeconomics affect the dollar, and how it relates to Bitcoin and gold. Looking at the rest of the market can provide insight into possible movements. The video also promotes a buy bit challenge with bonuses and an airdrop for viewers.
How the Dollar Impacts Bitcoin and the Cryptocurrency Market
Introduction
Understanding how the dollar affects Bitcoin and the rest of the cryptocurrency market can give traders an edge in becoming a professional trader. In this article, we will explore how gold also correlates with Bitcoin and the rest of the cryptocurrency market, and how market enthusiasts can benefit from this knowledge.
The Importance of the Dollar in the Forex Market
The dollar, also known as the DXY (dollar basket), is a crucial currency in the Forex market, specifically 62% of the world’s reserve. With over $6 trillion traded in the day, nearly 90% of FX global transactions are used as the dollar, making it the king of the market.
The Impact of the Dollar on Cryptocurrency Trading
As the dollar is paired against most cryptocurrencies, it is essential to understand how the dollar is doing to get an idea of how Bitcoin or other cryptocurrencies will perform. Traders can look at the fundamentals and the technicals, with the latter being a key aspect of trading. Technical analysis can help identify key levels, and if major support has been tested multiple times in the past, then the inverse should apply.
For instance, if the dollar is weakening, the price of Bitcoin can rise, and the value of gold follows suit. Consequently, if both assets weaken, the market’s performance depends on which asset is weaker, and the same applies if both are strong. Such aspects indicate how important the dollar is in trading, and traders’ knowledge of the dollar’s performance could make or break their trade.
Using Technical Analysis to Predict Bitcoin’s Performance
Technical analysis is a critical tool for traders. One can identify key levels and determine the inverse trend while using this method. For example, Bitcoin has tested a significant support zone several times in the past and has an opportunity to break through the high point. Still, a triple bottom and triple topper gives traders an opportunity to make a few predictions.
Impact of Macroeconomic Events on the Dollar
Macroeconomics, such as unemployment rates, affect the dollar, making it weaker or stronger. For instance, countries with high unemployment rates may affect the currency’s performance, leading to price drops. As such, an asset that is stronger than the dollar, such as Bitcoin and gold, will rise. Such events’s knowledge and how they affect the dollar gives traders the opportunity to plan their trades and trade their plans.
The Importance of Global News in the Market
Global news, such as macroeconomic events, could affect the market in ways that traders cannot predict. Keeping an eye on the latest news and trends gives traders an idea of how the dollar could perform and adjust their trades accordingly.
Conclusion
In conclusion, understanding how the dollar affects the cryptocurrency market gives traders an edge by predicting the market’s performance. Using technical analysis, market enthusiasts can identify key levels and determine if an inverse trend occurs. Finally, knowledge of macroeconomic events and global news provides an in-depth analysis of how the dollar will perform and benefit traders in making informed decisions.
