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(Kitco News) – Global asset prices struggled amid a strengthening U.S. dollar on Friday, as the DXY surged to an intraday high of 113.226, its highest since May 2002.
Global financial markets plunged into the red on the back of DXY’s rapid rise, with the S&P, Dow and Nasdaq all posting their worst daily performance in weeks and the day down 2.62%, 2.59% and 1.80, respectively closed %, respectively.
The story was the same for the crypto market, where the majority of the top 200 tokens were trading in the red, as fears of a continuation of aggressive Federal Reserve policies caused traders to reconsider their exposure to the risky asset class.
Data from TradingView shows that a failed attempt by Bitcoin (BTC) bulls to rally above the $19,500 resistance led to a dip below the $19,000 support to hit a daily low of $18,541 before strengthening to bring it back above $18,900.
BTC/USD 4 hour chart. Source: TradingView
The top crypto’s struggle to generate any momentum was cited in Kitco’s senior technical analyst Jim Wyckoff’s morning BTC update, who noted that “the sharp global market turbulence late this week does not bode well for BC bulls, who had hoped market fears would ease a safe-haven bid for bitcoin.”
As it stands now, “the bears have the overall short-term technical advantage amid a price downtrend on the daily chart,” Wyckoff said. “The path of least resistance for prices is sideways down at the moment.”
This potential for a forward-moving bearish path was further confirmed by market analyst Rekt Capital, who issued the following tweet warning of a long-term support level turning into resistance.
#BTC remains hovering just below the red range low of its macro range
This means that old support may turn into new resistance
A monthly close like this would confirm this technical shift and could lead to a bearish continuation$BTC #crypto #Bitcoin pic.twitter.com/rX5G0iOH2A
— Rekt Capital (@rektcapital) September 23, 2022
Caleb Franzen, Senior Market Analyst at Cubic Analytics, also pointed to a worrying development on the Bitcoin chart as the appearance of a major head and shoulders pattern suggests further declines for the top crypto.
Enlarged view of the head and shoulders pattern for #Bitcoin pic.twitter.com/AI0YqO7zTJ
— Caleb Franzen (@CalebFranzen) September 23, 2022
Overall, analysts seem to agree that now may not be the best time to go all in and buy the downside, as a rising dollar and multiple global headwinds suggest more downside is imminent.
Red over the altcoin market
The days when Bitcoin struggles are known to hit the altcoin market even harder, and Friday was no different.
Data from CoinMarketCap shows that more than three-quarters of the top 200 tokens by market cap for the day are in the red, while those that are in the green saw minimal gains.
Daily performance of the cryptocurrency market. Source: Coin360
The only two notable mentions are Reserve Rights (RSR), which gained 11.65% to trade at $0.0073, and Cronos (CRO), which price rose 10.10% to trade at $0.1171 .
The total cryptocurrency market cap is now $920 billion and Bitcoin’s dominance rate is 39%.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of the author Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article assume no responsibility for any loss and/or damage resulting from the use of this publication.
