The dollar fails in a new attempt to break upward

Source: Criptonoticias Original Title: The dollar fails new attempt to break upwards Original Link:

Forex Market Context

The dollar index (DXY) fell back again after unsuccessfully attempting to break through the resistance zone located between 100 and 101 points, a level that has contained its advances for the past seven months.

According to technical analysis, the DXY has evidenced a lack of momentum and consistent downward bounces after testing resistance. Notably, considering that this index measures the strength of the greenback against the euro, the yen, the pound, the Canadian dollar, the Swedish krona, and the Swiss franc.

Macroeconomic Factors

This bearish behavior is partly due to the optimistic expectation of rate cuts by the Federal Reserve (FED) of the United States in December, as well as mixed macroeconomic indicators that have reduced demand for dollar-denominated assets.

Impact on bitcoin and cryptocurrencies

A weaker dollar tends to strengthen the appetite for risk, which has historically benefited bitcoin and other cryptocurrencies. When the US currency loses global strength, investors often rotate towards alternative instruments that offer appreciation potential.

This is because a depreciated dollar makes it cheaper to enter risk markets. Additionally, it pushes traders to seek returns outside of traditional fixed-income assets or cash itself.

Future Perspective

If the weakness of the DXY continues, a greater flow towards bitcoin is possible. Especially in a context where markets anticipate more flexible financial conditions looking towards 2025, according to industry analysts.