Bitcoin Eyes $20K Because “Excess Dollar Liquidity” is Still in System

KSBOhcet 980x580

The Bitcoin market suffered major losses mid-week as its price fell from its $19,500-top to as low as $16,200. Some analysts believe the cryptocurrency has more room for declines, given its 100 percent upside rally before the latest correction. Nevertheless, macro fundamentals are still favoring the young asset’s bullish outlook. One of Bitcoin’s major upside drivers is a weakening US dollar. The cryptocurrency was among the biggest beneficiaries after the Federal Reserve flooded global markets with excessive greenback liquidity through a flurry of emergency facilities to curb the coronavirus pandemic’s economic impact. Bitcoin holds strong above technical support offered by its 20-day exponential moving average. Source: BTCUSD on Many strategists expected the dollar to rebound after the US government reopened economies. While there were attempts, the US dollar index still declined, having hit its lowest level since 2018 just this week. Its downside bias showed investors’ likelihood to keep…

Read the original article here