Nasdaq, Bitcoin, Inflation – FinTwit Trends To Watch Next Week

BTC – BITCOIN PRICE CHART: DAILY TIME FRAME (27 DEC 2020 TO 13 MAY 2021)

Bitcoin Price Chart

Chart by @RichDvorakFX created using TradingView

Bitcoin price action officially fell into bear market territory this past week after sinking over -20% from its 14 April swing high just shy of $65,000. Bitcoin bears drove the crypto sharply lower after Elon Musk backpedaled his support by announcing that Tesla has suspended vehicle purchases using BTC due to environmental concerns around Bitcoin mining. When Tesla first announced its $1.5-billion Bitcoin investment on 08 February, it sparked an eye-popping 19.5% gain that day to close right above $46,400. Though Elon noted that Tesla will not be selling any Bitcoin, this development does not bode well for the narrative of increasing private sector adoption. Not to mention, after more criticism from SEC Chair Gary Gensler during a congressional testimony, who said the “odds we’ll see a Bitcoin ETF approved in 2021 are very low,” there was another blow to Bitcoin demand.

Potential for a pullback by Bitcoin was hinted at by bearish divergence on the relative strength index for a while, as I previously pointed out. This brings to focus possible technical support levels that might be able to keep the largest cryptocurrency by market cap afloat. Bitcoin bulls might look to defend the $45,055-price zone underpinned by the 28 February close. Breaching this technical obstacle exposes prior resistance-turned-supported provided by the 09 January swing high. A larger correction could see Bitcoin bears make a push toward the 200-day moving average before eying year-to-date lows around the $30,000-price level. That all said, perhaps Ethereum can continue to outshine Bitcoin performance.

DXY – US DOLLAR INDEX PRICE CHART WITH TEN-YEAR TREASURY YIELD OVERLAID: DAILY TIME FRAME (24 DEC 2020 TO 13 MAY 2021)

US Dollar Price Chart with Ten-Year Treasury Yields

Chart by @RichDvorakFX created using TradingView

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