Bitcoin Reaches for $25K as US Dollar Loses Momentum

• Bitcoin briefly touched $21,000 before reverting back and the 200-week EMA at about $25,000 appears to be its next upward goal.
• Positive macroeconomic data has revived the cryptocurrency sector, and the total market capitalization of the industry stands at $990 billion.
• The US dollar and bitcoin have had a negative correlation of -0.83, and the dollar’s death cross reveals its waning momentum.

Bitcoin has seen a surge in its value over the past week, reaching a high of $20.9k, after being in a stagnant state for months. The cryptocurrency industry’s total market capitalization currently stands at $990 billion, having seen an increase of more than 4% in the past day. This is indicative of the market’s newfound life, a result of encouraging macroeconomic data that has caused a revival in the sector.

Bitcoin has the potential to reach an even greater height, with the 200-week exponential moving average (EMA) of $25,000 being its ultimate target. This is a 20% increase from its current price level, which has already seen a 30% rise since it breached the $20,000 mark.

The US Dollar Index (DXY) has been inversely correlated to Bitcoin. As of January 16 of this year, the two had a -0.83 daily correlation coefficient. This is further evidenced by the dollar’s „death cross“ – an occurrence when an asset’s 50-period moving average crosses below its 200-period moving average – which shows that the dollar’s short-term trend has been lagging behind its long-term trajectory.

Inflation has been decreasing, with the first monthly drop in 2.5 years being recorded recently. This has had a positive effect on both traditional markets and the cryptocurrency sector, indicating that the economic recovery is well underway.

As Bitcoin continues to rise in value, it appears that the 200-week EMA of $25,000 is within reach. This could provide a huge boost to the cryptocurrency sector and the traditional markets, as investors become more optimistic about the future. However, it is important to remember that the market can be unpredictable, and a drop below $20,000 is not out of the question.