Bitcoin dips below $47K as US dollar surge dampens BTC price performance

Bitcoin (BTC), which crossed $47,000 on Jan. 3, was the first Wall Street trading day of 2022.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

Ethereum grabs the spotlight

TradingView and Cointelegraph Markets Pro data showed that BTC/USD traded in a narrow range at the beginning of the week, with traders arguing over short-term outcomes.

Popular Twitter account Galaxy stated that “it’s only a matter time before BTC explodes, and the longer the pump takes, the harder it will pump,”

“Q1 is only up. It was here that you heard it first.

However, such optimism was not universal. Michael van de Poppe from Cointelegraph felt that it was time to examine altcoins more than Bitcoin.

He said that Ethereum had shown a good bounce and that he believes this trend is over,” Monday’s statement was about the state of USD/ETH.

“Still require additional confirmation, but is stronger than Bitcoin at the moment. Final confirmation higher than $4,100

At the time of writing, ETH/USD had risen more than 2% in just 24 hours. BTC/USD however showed no desire to reach daily highs.

BITSTAMP: ETH/USD 1-hour candle charts Source: TradingView

The S&P 500 was slightly up at the Wall Street Open, despite expectations that the first half would be a boon for equity across the board, thanks to key interest rate increases.

The U.S. Dollar saw an unexpected boost Monday with the U.S. currency index (DXY), rapidly increasing — as is usual, to Bitcoin’s detriment.

U.S. dollar currency indicator (DXY), 1-hour candle chart. Source: TradingView

Don’t forget the bearish divergence

TechDev, one of the Bitcoin-focused analysts, led calls to quell bearishness. He argued that on-chain indicators don’t support a bearish thesis.

Related: 5 Things to Watch in Bitcoin This Week

He said that concerns about the relative strength index (RSI), and the moving average convergence/ divergence are insignificant compared to other fundamental indicators which still have yet to show a bearish outlook.

4/ While the 2 points are valid, I don’t think they are enough to be considered. They haven’t been historically reliable in identifying macrocycle trend changes. 2 that have. Macro LLs, and 2W RSI floor break. None of these have occurred. My macro outlook will change if they do.
TechDev (@TechDev_52), January 3, 2022

TechDev was in good company, with conviction high and sales declining.

Alistair Milne, entrepreneur, said that they have made a lot of progress from the nerdy retail HODL’ers who were the buyers last resort.

“We now have multi-billionaires, multinationals, and countries that are eager to buy the dips. Anyone who is on the other side needs to be examined IMO.

Some believe that a fresh infusion of institutional interest could be starting this month.