Against all odds, the US Dollar Index has managed to peek its head above 90.00. The crypto market is officially in a bear market as coins across the board reach new yearly lows.
After a convincing break on Monday, the Dollar has managed to find enough support from bulls to stay afloat. This can be a bit of an annoyance to traders as many indications point to a weaker Dollar. The Dollar has been known to recently have deep retracements to create its lower highs before ultimately moving lower.
Early suspicions of a looming bear market for cryptos have become a true reality. Bitcoin which made a new all-time high back in April has reached as low as 30,000 today. Ethereum which made its all-time this month crashed below 2,000. Further losses may be seen in the coming months.
Traders are left with an ever-changing Dollar, a consolidated commodities market, and a struggling crypto market. Typically in such scenarios, it is best to be adaptive rather than reactive. Trade what you see, not what you believe.
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- Read yesterday’s breakdown: USDCHF and USDCAD Shorts Ready as Dollar Drops
