Although we see riskier assets such as equity futures finding more bids today and traders supporting the sentiment and picking up the momentum where they left off last night, Bitcoin and gold prices are also increasing. This is primarily due to the reason that the dollar index has weakened, as we discussed previously.
Bitcoin has been under pressure due to the Fed's monetary policy, and that is, the Fed is increasing the interest rates. But the price action now shows that it is the dollar strength or weakness that matters the most for the Bitcoin prices. The fact that we have seen the dollar index coming off its highs, now we do see Bitcoin prices moving higher as well. It will be interesting to see if the relationship continues to hold as the Bitcoin price is still not far off from its critical support of 20K.
BTC and Ethereum prices crossed above the price level of 23K and 1.6K, but the main resistance which will clear the threat of any further downside move is if BTC crosses above the 30K price mark and ETH soars to 2K.