Monday, 1 June 2020

Bitcoin Braces for $11,000 on Weaker Dollar Demand

By Yashu Gola



  • Bitcoin rose above $10,000 in an overnight rally Monday for the first time since May 8, 2020.

  • The gains surfaced as investors sold the US dollar for riskier assets amid optimism about economic recovery.

  • Other factors, including the U.S.-China tensions and the stock market’s upside, also contributed to the rally.

     

Bitcoin rose Monday in a surprising rally that took its price up by almost $1,000 in less than 12 hours.




The benchmark cryptocurrency climbed 10.17 percent to $10,428 ahead of the UTC midnight close. The wild move uphill helped bitcoin break above crucial technical resistances defined by a long-term descending trendline and a $10,000 price level.
It further indicated traders’ likelihood of testing $11,000 in the coming weeks.


Weaker Dollar

The moves in the bitcoin market took its cues from supportive macro fundamentals.
On Monday, the WSJ Dollar Index, which measures the greenback against 16 other currencies, plunged 0.57 percent to 92. Observers noted that investors sold the dollar to buy riskier currencies, a sentiment that may have fueled the bitcoin price rally above $10,000.

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