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US Dollar Depreciation Could Spike Crypto Prices, Says Analyst

Published 11/07/2023, 12:10
Updated 11/07/2023, 12:15
© Reuters US Dollar Depreciation Could Spike Crypto Prices, Says Analyst
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  • Michael Pizzino believes the US dollar’s decline could boost crypto prices.
  • Weaker US dollar could positively impact cryptocurrencies like Bitcoin.
  • Pizzino’s analysis includes Ethereum, Solana, Polygon, XRP, Gala, and Render.

Prominent crypto analyst and trader Michael Pizzino believes the US dollar’s decline could spike the prices of cryptocurrencies. In a recent YouTube video, Pizzino discussed a possible breakdown in the US dollar and its far-reaching consequences for the economy.

The video highlights how a weaker USD could positively affect assets priced in US dollars, such as cryptocurrencies like Bitcoin. Given the correlation between the US dollar and Bitcoin, the decline of the former could have a favorable influence on the latter.

Pizzino points out that Bitcoin’s macro chart suggests an upward trend, and if the US dollar weakens further, it could contribute to continued upward pressure on Bitcoin’s price. This analysis aligned with the YouTuber’s previous coverage of Bitcoin’s bottoming process and anticipated upward movement in the long term.In the short term, however, Bitcoin is currently trapped within a trading range, with key levels to watch at around $31,500 as the ceiling and $29,500 as the floor. A breakout above or below these levels, followed by higher lows or lower highs, would signal a definitive trend on a higher timeframe.

The analysis then delves into short-term trends, focusing on other cryptocurrencies such as Ethereum, Solana, Polygon, XRP, Gala, and Render. Pizzino discusses various support and resistance levels, and key price points for each cryptocurrency. He cautions viewers that short-term trends can change frequently, but he highlights specific levels to watch for potential breakouts and confirmations of trend changes.

While Pizzino does not predict the collapse of the US dollar, he anticipates a sustained downtrend or a likely distribution pattern, which could lead to declining prices over months or even years. However, he notes that currencies generally move slower than other asset classes, suggesting a more gradual decline rather than an abrupt collapse.

The post US Dollar Depreciation Could Spike Crypto Prices, Says Analyst appeared first on Coin Edition.

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