Despite the positive inflation data, Bitcoin and altcoins experienced sudden and sharp decreases.
Last week, positive inflation data pushed Bitcoin above $28,000, while the negatively correlated Dollar Index (DXY) with BTC fell.
However, this rise in BTC was short-lived and DXY put pressure on risky assets, including Bitcoin.
However, sellers failed to hold BTC below the 200-week simple moving average, and Bitcoin started the new week with a rise after these dips.
While it is not known whether this rise is the weekend pump or the beginning of a rise that will throw BTC above $ 30,000, analysts shared their Bitcoin expectations.
"Bitcoin Must Break This Level!"
Speaking to Coindesk, FX Pro senior analyst Alex Kuptsikevich noted the importance of the 200-week simple moving average in BTC, saying that "the bulls have convinced the market that the long-term uptrend is sustainable."
“Bitcoin must surpass $28,500 to provide stronger evidence that the price slide is over, i.e. it is ready to rally.”
"Bitcoin and Altcoins May Fall While DXY Rises!"
Another analyst evaluating Bitcoin, Marex head of digital assets, Ilan Solot, said he expects DXY to continue to rise and put pressure on cryptocurrencies like BTC.
“I think the dollar should bounce back as the markets are rising in line with the Fed's easing signals.
In this context, I expect a pullback in BTC. However, I believe this pullback in BTC will be short-lived and will offer a great entry point for investors.”
Swissblock Insights analysts also stated that DXY will rise in the short term, but then reverses, DXY falls and BTC moves up.
“Considering that DXY has crossed 102 since mid-March, DXY could reach any level from 104 to 107.
This upcoming dollar bounce will pave the way for a deeper drop in cryptocurrencies like BTC, which will bode well.
However, this situation will reverse after a month and both Bitcoin and DXY will see new price levels.
Presumably, DXY will go down as Bitcoin price goes up.”
Bitcoin continues to trade at $ 27,430 at the time of writing.
*Not investment advice.
