bitcoin caught a very modest bid on Tuesday as the US dollar fell to new multi-year lows following President Donald Trump’s remarks.
Speaking to reporters before a scheduled speech in Iowa, the president said the dollar is doing very well and he was not worried about the dollar’s recent declines.
The US Dollar Index (DXY), which had already fallen over the past week and fell sharply again on Tuesday, fell further following the President’s comments to 95.80, its weakest level in about 4 years.
After languishing below $88,000 for most of the session, bitcoin advanced to $89,300, up 2.2% over the past 24 hours. Ethereum ether rebounded above $3,000, an increase of 3.9%.
Amid a pause following its impressive rally above $5,000 an ounce, gold resumed its bullish move against the weaker dollar, hitting a new record of $5,215, up 1.8% on the session.
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BTC bounces to $95,000?
While the short-term prospects for cryptocurrencies remain in question, some technical analysts see signs of an imminent reversal.
According to Bitcoin Vector, Swissblock’s research service, and well-known analyst Willy Woo, a major bullish divergence is forming between Bitcoin price and its RSI momentum indicator. Similar setups have historically produced returns of around 10%, the team noted.
“We are probably at the genesis of a major bullish reversal,” said Bitcoin Vector. “A return to $95,000 seems likely.”
