Cryptocurrency analyst names the reasons for bitcoin’s further decline

Popular cryptocurrency analyst CrypNuevo has published a new post on the X platform in which he shared his opinion on the current dynamics of the flagship digital asset.

The expert noted that bitcoin is currently under serious pressure. This was facilitated by the recent comments of Fed Chairman Jerome Powell. The official’s rhetoric made it clear that there is no reason to count on a quick easing of monetary policy in the United States, CrypNuevo emphasized.

A quick follow up from the Sunday update:

1) $SPX is starting to fill the gap.
2) $DXY printing a potential deviation.
3) $BTC made the false move up and then dropped to $ 26.1k liquidations.

Now we need the following things to happen in order to see BTC completing the last part… pic.twitter.com/gU0ryWbJFn

— CrypNuevo 🔨 (@CrypNuevo) September 26, 2023

The rise in US Treasury bond yields also played a significant role in the BTC $98,228.67 Bitcoin -0.51% Market capitalization $1.94 trillion VOL. 24 hours $2.43 billion slump, against which investment demand for high-risk assets, including cryptocurrencies, has seriously declined. CrypNuevo believes that to assess the prospects of bitcoin, it is necessary to closely monitor the dynamics of the dollar index.

«There is a possibility that the dollar index will go into a deep bearish correction amid these events. And if this possibility works out, bitcoin may locally strengthen its position,» the analyst emphasized.

As a reminder, CoinCodex’s machine learning system has suggested that bitcoin will grow by 9.5% to reach $ 29,703 by the end of October. It is noteworthy that the cryptocurrency market even has such a concept as Uptober. The idea is that every October, bitcoin significantly increases in value. This phenomenon was even relevant last year after the resonant FTX crash. For example, on October 1, 2022, the asset was trading at $ 19,300, but by October 31, the coin reached $ 21,000.