Data from Cointelegraph Markets Pro and TradingView showed BTC/USD practically flat over the 24-hour period as of writing.
With the lack of macro signals, analysts looked to a potential collapse in US dollar strength as a catalyst for the next volatility of crypto and risk assets.
The US Dollar Index (DXY) looked ready to challenge multi-day support, falling below 105 several times on the day.
Joe Karyasar, co-host of the Inside Bitcoin podcast, noted that “$DXY has been below the 100-day moving average for the first time since June ’21.”
US Dollar Index (DXY) candlestick chart. Source: TradingView
Trader and analyst Pierre added that both the DXY and the S&P 500 may trade sideways until the November Consumer Price Index (CPI) comes out on December 13th.
The event, as Cointelegraph reported, is a classic temporary volatility trigger.
“Meanwhile, both SPX and DXY are still hovering around their own D1 200 EMA,” the chart reads in the comments.
“DXY is flipping its resistance so far, while SPX is sitting at the uptrend of D1, which is an important level to defend. They both look as if all they want is more and more pieces until next week’s CPI.”
In BTC/USD, popular trader Daan Crypto Trades predicted that the trading range would expand with liquidity absorbing both above and below the site.
“$BTC is in a very tight range here with tons of untapped highs and lows,” he told his Twitter followers.
“I think all of these levels will get wiped out and the initial move will likely become fake only to pull back and take the other side. It will definitely be a classic Bitcoin move.”
Annotated BTC/USD chart. Source: Daan Crypto Trades / Twitter
The “End Phase” of the Bitcoin Bear Market?
Another modest tailwind came from US stocks during first hour trading on Wall Street.
Related: GBTC Elevator To Hell Sees Bitcoin Spot Near 100% Premium
The S&P 500 is up 1% at the time of writing, while the Nasdaq Composite is up 1.2%. The move went some way to copying a restful day in Asia, as trading ended up in Hong Kong’s Hang Seng Index up 3.4%.
However, looking at the longer time frames, the picture remained bearish for bitcoin for many.
The famous commentator Byzantine General went on record to announce the potential start of the darkest bear market phase in 2022.
“Volume Perps is in a very strong downtrend right now. The market has shrunk and speculators are giving up,” he wrote, referring to the perpetual futures markets.
“It is possible that we are entering the final stage of the bear. But that last stage can continue for a long time.”
Data from Coinglass additionally showed open interest in futures contracts continuing to decline.