The crypto space is undergoing a serious squeeze as the majority of the tokens including the star crypto are on the verge to visit the lower support igniting a bearish trend. On the other hand, the altcoin market cap is also on the verge to slice through the lower support. Therefore, the bearish trend appears to prevail to a larger extent that may drain another 15% to 20% of the value very soon.
While the traders appear to be in extreme fear as the Fear and Greed index has plummeted to levels around 11, the strengthening of the US dollar is another matter of concern. The DXY index is hovering around the crucial resistance at around 103 from the past week, which points toward a bearish trend for the Bitcoin and entire crypto space. Therefore it is believed that the BTC price may bottom hard in the next couple of weeks as per a popular analyst.
Tha analyst referring to the performance of the U.S government bonds from the past decade believes a large plunge is yet to happen within the crypto space. He says that this element is about to play a vital role in the further price action of the cryptos. As the low rates have gone, the trend has shifted from lower highs & lows to higher highs and lows.
Explaining in detail, the analysts say that the correction of the DXY Index due to the increased interest rates by the FED is a temporary one. And once the DXY ranges beyond the resistance, the crypto space may experience a massive crunch. Now while the yields are dropping, people feel no stress from the crisis but eventually, after some time, when yields grow, the debt and the real estate market may slash the entire financial system.
And this may be when the people may quickly shift their focus on the crypto market and Bitcoin. Therefore, the BTC price may undergo a serious squeeze in the next 1-2 weeks as said by the analyst and later may witness a significant trend.