Bitcoin has managed to hold a firm above $38,000 despite pressure from a rising dollar. In the past 24-hours, the dollar has rallied after Jerome Powell, the Federal Reserve Chairman, indicated that while inflation could be high now, it was trending towards the normal long term.
The Fed Chairman stated that from a long-term view, inflation indicators were in the right place. He noted that these indicators had made a healthy recovery from the lows that they had hit in the heat of the pandemic.
The confidence that the Fed Chairman gave on inflation inspired confidence in the dollar. This has put pressure on other assets, and more so on Bitcoin. During the Federal Reserve meeting where the chairman made the remarks, the dollar index rallied and tested a two-month high.
However, crypto investors see Bitcoin’s resilience despite the rising dollar as a bullish signal. Over the last 24-hours, Bitcoin has held steady along the 100-day moving average support. In fact, it has bounced off a $38,074 intra-day low and is holding firm above $39,000.
The bounce off $38k has also seen crypto traders and commentators turn bullish on Bitcoin. According to Ed, a crypto trader, the fact that $38k held is a good signal. He added that this is a bullish signal considering a futures gap at around $37k.
Another trader known as Peter Brandt stated that while such gaps exist, $38k was showing strong support could mean that they won’t be filled. The fact that HODLERs don’t seem to be selling much is also a positive indicator.