Bitcoin Shows Strength Amid Rising Inflation And War
2022.04.05 13:12
Bitcoin has shown more strength since the end of last month as usage gained pace in Eastern Europe due to the war, and participants increasingly realize that fiat rates above inflation remain far away. The increasing popularity of crypto interest schemes in their various forms has drawn attention to many major cryptocurrencies as inflation has reached 40-year highs in some major economies and might continue to increase.
On the chart, there’s no clear indication of an imminent uptrend. While the upper boundary of January-February’s range was broken on Mar. 27, momentum declined after this with clear overbought conditions, and ATR has only very slightly increased compared to the average in late March. The 23.6% weekly Fibonacci retracement, which aligns with the 100 SMA, might be a strong support area over the next few days around which more buyers might enter.
Bitcoin price chart.
In general, bitcoin’s strongest correlation is with American indices, so it’s possible that gains for these around American data this week could generate more buying activity. However, a round of notable gains could still be some time away. This week, there are no releases that specifically affect bitcoin; however, it seems likely that changing sentiment on monetary policy, especially in the USA, can also affect sentiment on the leading cryptocurrency.
