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Saturday, December 9, 2023
HomeFinance NewsBitcoin Jumps 2% as XRP Eyes Death Cross, Ignoring DXY's 10-Month High

Bitcoin Jumps 2% as XRP Eyes Death Cross, Ignoring DXY’s 10-Month High

Bitcoin defied the rally in the US dollar as spot buyers caused a rise in the leading cryptocurrency’s value. The price of Bitcoin increased by 2% to reach $26,750, while the US dollar index hit a 10-month high of 106.48. Typically, a stronger dollar has a negative impact on risk assets such as cryptocurrencies. However, the spot market buyers initiated the upward movement of Bitcoin, leading to market buying and squeezing the bears who were covering their futures bets. This resulted in further price increases.

Coinalyze’s data showed that the early rise in Bitcoin’s price was accompanied by an increase in the spot market cumulative volume delta, indicating net capital inflows or buying in the spot market. Furthermore, the stablecoin-margined and coin-margined futures contracts also contributed to the market’s upward movement. As Bitcoin rose, other major cryptocurrencies like ETH and XRP followed suit. Surprisingly, XRP managed to gain 1% despite the impending death cross, which is a bearish signal occurring when the 50-day simple moving average of prices falls below the 200-day SMA.

XRP’s death cross is a recurring pattern, similar to those observed in Bitcoin and ether in recent weeks. These patterns are lagging indicators and can often trap sellers on the wrong side of the market. In the case of Bitcoin, the downward momentum lost steam below $25,000 after experiencing a death cross on September 11. Despite the ominous-sounding name, historical patterns suggest that these indicators may not always accurately predict future market trends.

In summary, Bitcoin’s price rose despite the strengthening US dollar, thanks to spot buyers and the short squeeze of bearish futures bets. The rise in Bitcoin’s price was accompanied by net capital inflows in the spot market and support from stablecoin-margined and coin-margined futures contracts. XRP also experienced a price increase despite the impending death cross, a technical indicator that often traps sellers on the wrong side of the market. It remains to be seen how these patterns will ultimately impact the cryptocurrency market.

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