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Binance pushes back against report stablecoin isn’t fully backed

The crypto exchange said there was a “timing mismatch in backing Binance-Peg BUSD with BUSD” that seemingly showed data in which the stablecoin was not fully backed.

Major crypto exchange Binance initially pushed back against a Bloomberg report that its Binance-Peg BUSD stablecoin “doesn’t always appear to have been completely backed by BUSD”.

In a Jan. 10 blog post, Binance said the basis for the report — which was later amended to clarify the difference between a pegged and backed stablecoin — was a “timing mismatch in backing Binance-Peg BUSD with BUSD”. Based on an analysis from ChainArgo co-founder Jonathan Reiter, the news outlet reported that the Binance-peg BUSD was often undercollateralized between 2020 and 2021, a gap that sometimes exceeded $1 billion.

However, according to the exchange, its Binance USD (BUSD) stablecoin was “fully backed by USD cash and cash-equivalent reserves” and the Binance-Peg BUSD was fully backed by BUSD. The reported mismatch seemingly showed data in which the stablecoin was not fully backed at times.

“Despite variances in the data, at no point were redemptions impacted for users,” said Binance. “There is also no impact to BUSD on ERC-20 issued by Paxos, which is regulated by the NYDFS, audited monthly and backed by USD cash and cash-equivalent reserves.”

Regulators and media outlets seemingly turned more of their attention to stablecoins following the collapse of Terraform Labs and its TerraUSD token — now TerraClassicUSD. The crypto platform was one of the first in 2022 in a series of bankruptcies and failures that included Voyager Digital, Celsius Network, BlockFi and FTX, affecting thousands if not millions of users in the crypto space.

Tether, one of the largest stablecoins by market capitalization, came under fire for similar allegations that its USDT tokens were not fully backed starting with a 2019 lawsuit. In September, a U.S. judge ordered Tether to provide evidence its USDT was backed 1:1. Bitfinex and Tether also reached a settlement with the Office of the New York Attorney General in 2021, agreeing to pay $18.5 million for misrepresenting the degree to which USDT was backed.

Binance pushes back against report BUSD-peg stablecoin isn’t fully backed

The crypto exchange said there was a “timing mismatch in backing Binance-Peg BUSD with BUSD” that seemingly showed data in which the stablecoin was not fully backed.

Major crypto exchange Binance initially pushed back against a Bloomberg report that its Binance-Peg BUSD stablecoin “doesn’t always appear to have been completely backed by BUSD”.

What is USD Coin (USDC), fiat-backed stablecoin explained

USDC is a U.S. dollar-backed stablecoin issued by Circle and Coinbase to combat the price swings of the highly volatile cryptocurrency market.

Is USD Coin safe?

Despite the fact that the USD Coin is subject to regulatory oversight, investors must weigh the pros and cons of investing in stablecoins before committing any funds.

Comparing USDC with USDT, USDC is subject to regulations as it is audited from time to time, and Circle is fully transparent about its operations. However, investing in the cryptocurrency market, even in stablecoins, has its own cons. For instance, the price of the USD Coin will never appreciate as it is pegged to the U.S. dollar.

This disadvantage is offset by the provision that USDC can be lent and borrowed on decentralized platforms to earn passive income. Moreover, it depends upon one’s risk-return profile and how much funds one wants to allocate to a particular asset. Also, with trusted exchanges like FTX going bankrupt, one must be mindful of the risks of investing in stablecoins and cryptocurrencies.

USDC vs. USDT

Although both USDC and USDT are USD-backed stablecoins, they have some differences in terms of the year they were launched, issuing organizations, compatibility with blockchain networks, assets-backing and auditors.

USDC and USDT are fiat-collateralized stablecoins pegged to the U.S. dollar, which were introduced to combat the highly volatile price swings of the cryptocurrency market. The majority of significant cryptocurrency exchanges offer USDC.

Similar to USDT, USD Coin can be sent and received by any ERC-20 compliant wallet or exchange and other blockchains like Stellar, Algorand, Solana and more. Along with these similarities, significant variations between these two stablecoins could influence a user’s choice.

Here are a few differences between USDC and USDT stablecoins:

How to buy a USD Coin?

USD Coin can be bought on cryptocurrency exchanges after meeting the Know Your Customer requirements.

One can buy USDC on exchanges like Coinbase, Kraken and Gemini. For example, buying USD Coin on a centralized exchange like Coinbase involves the following steps:

Sign up on Coinbase and get your account verified to start transacting.
Add a payment method such as a wire transfer, debit credit or bank account.
Start trade by selecting “( )” Buy on the Coinbase mobile app or Buy & Sell on Coinbase.com.
Enter “USD Coin” in the search field of the Coinbase mobile app to select USD Coin from the list of assets. Instead, click the Buy panel on Coinbase.com to search for and choose USD Coin.
Enter the amount you wish to spend to change the value to the corresponding amount of USD Coin.
Confirm your purchase by clicking “Buy now” to complete the purchase.

What are the advantages and disadvantages of USD coin

USDC offers instant payments, saves users from the cryptocurrency market’s price volatility and is audited by a regulated auditing firm, making it a transparent stablecoin. However, it does not offer price appreciation opportunities, and investors may incur high transaction and withdrawal fees while dealing with USDC.

One of the key advantages of the USD Coin is the speed of the transaction. Usually, one must wait a long time to send and receive USD because institutions such as banks and their complex procedures slow down the processing of transactions. Nonetheless, USDC allows instant clearing and settlement of payments.

In addition, stablecoins like USDC saves users from the price volatility of cryptocurrencies, as leading American financial institutions ensure that Circle’s reserves are 100% backed by the U.S. dollar or short-term treasuries at all times. Moreover, there are numerous digital asset exchanges where one may buy USDC. Many exchanges also enable the withdrawal of USDC across various blockchains.

Furthermore, using a cryptocurrency wallet, one can quickly make cross-border payments or remittances. Similarly, one can earn passive income by lending USDC on decentralized finance (DeFi) platforms like Aave.

Regardless of the above advantages, the USD Coin may not be an ideal investment asset for those looking to earn money from digital assets because USDC may not offer potential price appreciation opportunities to yield profits.

Also, some exchanges charge a high fee for withdrawing USDC stablecoin, and transaction fees may be higher than a typical bank transfer or a PayPal transfer for smaller transactions. Moreover, even if DeFi platforms offer more interest for each USDC lent, they are riskier, as evidenced by various crypto heists.

What are the unique features of USD Coin

A USD Coin is a fully transparent and audited stablecoin, which is pegged to the U.S. dollar and can be used for instant global payments, purchasing goods and services and lending and borrowing without intervention of third parties.

The USD Coin maintains the same value as the U.S. dollar, making it a unique option for holding a digital currency without bearing the price risk of major cryptocurrencies such as Bitcoin (BTC) and Ether (ETH). Other notable features of the USD Coin are explained below:

Instant global payments: USDC allows individuals and businesses to accept payments in digital assets 24/7. As a result, it is possible to transmit money across international borders as rapidly as sending a text message.
Purchase goods and services: Online retailers allow customers to purchase various items using USDC. For instance, users can buy NFT compilations of rare basketball moments with USDC on well-known online marketplaces like NBA Top Shot.
Instant lending and borrowing: USDC can be lent to those in need without the intervention of third parties. Similarly, it is feasible to borrow USDC instantaneously and start using funds in a matter of seconds rather than waiting several weeks to secure a loan.

How does a USD Coin work?

Each time a USD is deposited, a smart contract creates a USDC that may be redeemed for one dollar.

USDC commercial issuers must possess any or all licenses required by the operating jurisdictions. Moreover, they need to ensure audited Anti-Money Laundering and compliance processes that comply with the Financial Action Task Force requirements.

They should support the fungible exchange and redemption of USDC tokens from other reputable issuers and abide by further reporting and review specifications set forth by the Center. USDC issuers must also hold reserves at a 1:1 ratio to the amount of issued tokens and offer monthly publicized proof of reserves with qualified public auditors’ attestations.

Technically, a USDC token is created via a smart contract each time a dollar is deposited. Moreover, each USD Coin is redeemable for one dollar and is backed by either one dollar or an asset denominated in USD (fiat currency), which is kept in accounts at regulated institutions in the United States.

For stablecoins and USDC to function as intended, the parties in charge of overseeing them must be trustworthy and transparent. As a result, Circle employs Grant Thornton LLP, a U.S. accounting company, to audit those accounts and offer routine updates via monthly attestations on the reserves supporting USDC.

Then, to maintain consistent backing, the coins are permanently destroyed, or burned, when a consumer wants to redeem USDC back for dollars, and funds from the underlying reserves are returned to the client’s external bank.

What is a USD coin (USDC)?

A fully-reserved stablecoin, USDC, was created to ensure price parity with the US dollar.

USD Coin (USDC) is a fiat-collateralized stablecoin, a decentralized digital asset that lives on the blockchain and is pegged to a fiat currency — in this case, the United States dollar — to stabilize its value against market volatility. However, USDC is not the only stablecoin available in the market. Another asset-backed (U.S. dollar) stablecoin called Tether (USDT) was launched in 2014 by Tether Limited.

So who is behind the USD Coin? The Boston-based Circle and Coinbase exchange created the USD currency (USDC) in 2018 as part of the Center consortium. USD Coin claims to be equivalent in value to one U.S. dollar, meaning that for every USDC in circulation, one U.S. dollar is held in reserve. In essence, the USD Coin is a service that tokenizes the U.S. dollar and makes it easier to utilize over the internet and on public blockchains.

Unlike cryptocurrencies, the USD Coin cannot be minted. USDC is available as ERC-20, the most widely used standard for blockchain apps, making it interoperable with all other Ethereum-based decentralized applications (DApps). However, it is not solely restricted to the Ethereum network. Instead, the USD Coin is compatible with significant blockchain networks, including Solana, Stellar, Algorand, Flow and TRON.

Since its introduction, USDC has established itself as a critical component of the stablecoin market with ample liquidity and trading across centralized and decentralized exchanges worldwide.

Bitcoin price fails to retake $17K with market ‘not prepared’ for dip

Bitcoin remains stable, but that will not last long, BTC price analysis agrees.

Bitcoin (BTC) divided traders yet again on Dec. 21 as sideways BTC price action split opinion on the future.

*BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView*

$17,500 becomes popular BTC price target

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it acted within a tight range just below $17,000.

A single brief spike above the $17,000 mark failed to last, the pair returning to familiar territory from the past week.

For popular traders, there was a lack of consensus, with some calling for an eventual breakout to the upside and others demanding a rapid fall toward $10,000.

“I’d want it to hold $16.7K in order to see continuation on Bitcoin,” Michaël van de Poppe, founder and CEO of trading firm Eight, told Twitter followers on Dec. 20:

“For now, it’s fine. Some sideways consolidation, before breaking $17K for further continuation to $17.5-17.7K.”

Fellow trader and analyst Elizy agreed on the potential for a rethink once $17,500 hit, while Crypto Tony also eyed that zone as a line in the sand.

“Holding that EQ would still present a good opportunity for us to pump to the supply zoned around $17,300 – $17,600. My stop loss on my short is if we close above $17,600,” he commented alongside a chart on the day.

*BTC/USD annotated chart. Source: Crypto Tony/ Twitter*

Trading resource Game of Trades, meanwhile, eyed the potential for the S&P 500 to punish bears next.

“Short squeeze setup in the works for the market,” it predicted alongside a put/ call ratio chart for the index:

“A big move up and it’s game over for all these puts.”

*S&P 500 aggregated put/ call ratio annotated chart. Source: Game of Trades/ Twitter*

Far from bullish, on the other hand, Il Capo of Crypto warned that a downside move would take market participants by surprise.

“Most people are not prepared for what is coming and it shows,” he tweeted, echoing a tone in place for much of the year.

Il Capo of Crypto additionally noted that “some altcoins leading the drop already, breaking key supports and most of them making new lows.”

“So calm being out of the market,” he added:

U.S. dollar stable after Japan shake-up

After surprise events involving the Bank of Japan (BoJ) the day prior, the U.S. dollar began to consolidate after seeing a fresh drop.

The U.S. Dollar Index (DXY), ostensibly still inversely correlated to crypto markets, focused on the 104 mark at the time of writing.

*U.S. dollar index (DXY) 1-hour candle chart. Source: TradingView*

“DXY lower due to other currencies becoming relatively stronger on hawkish policy —> stocks + crypto down/sideways,” commentator Tedtalksmacro summarized in part of a Twitter reaction to the BoJ.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Waves founder announces new stablecoin as USDN depegs

Days after USDN lost its peg with USD, Waves CEO and founder Sasha Ivanov promised that his new stablecoin will be “undepeggable.”

Sasha Ivanov, founder and CEO of the Waves blockchain platform, is planning to launch a new stablecoin amid the ongoing crisis of the Waves-backed stablecoin, Neutrino USD (USDN).

Ivanov took to Twitter on Dec. 20 to announce the USDN situation resolution plan alongside a new stablecoin project.

“I will launch a new stablecoin,” Waves founder wrote, adding that there is going to be a “USDN situation resolution plan set in motion before.” He stressed that nothing new will be launched or announced until the USDN plan resolution is set in motion. Ivanov also promised that the stablecoin will be “undepeggable.”

Ivanov told Cointelegraph that the the new stablecoin will be a “hybrid between an algorithmic stablecoin” and will be based on the decentralized autonomous organization model. “It will be implemented using an approach which is native to Waves and cannot be implemented on other chains,” he noted.

One of the biggest reasons for the USDN crash is that the current USDN model is not attuned to the current market conditions, Ivanov said, adding that more robust models should be developed. Referring to USDN as to an “incentivesbased stablecoin,” he stated:

“Unfortunately incentive based models do not account for black swan events, they work in 99.9% of market conditions but are not able to withstand very heavy market volatility.”

Despite USDN’s imperfections, Waves does not plan to abandon the stablecoin. “USDN will not be completely phased out, we’re absolutely committed to stabilizing USDN and the new stablecoin should actually help USDN to restore its value,” Ivanov stated. The CEO added that overcollateralization and adaptive algorithms should help create “un-depeggable assets.”

Neutrino USD is an algorithmic crypto-collateralized stablecoin pegged to the United States dollar and backed by Waves. The USDN stablecoin has been struggling to maintain its 1:1 peg, losing the peg multiple times in 2022.

USDN saw the first major crash in early April 2022, with the stablecoin tumbling to $0.8. The tok has subsequently lost its peg several times since, with the latest crash bringing USDN to as low as $0.53. At the time of writing, one USDN token is worth $0.58, according to CoinGecko.

*Neutrino USD (USDN) one-year price chart. Source: CoinGecko*

The news comes amid the Waves (WAVES) cryptocurrency seeing a significant drop in price due to the South Korean crypto exchange authority, the Digital Asset eXchange Alliance (DAXA), issuing a warning on WAVES on Dec. 8. According to data from CoinGecko, WAVES has lost about 30% of its value since the DAXA released the warning.

Waves subsequently pointed to “misinformation” disseminated by some centralized exchanges that have been shorting the Waves token, despite “no fundamental distress being present in the Waves Ecosystem.”

“The Waves team responded to the baseless allegations quickly and since then some exchanges have begun to roll back their restrictions,” Waves noted in a blog post.

Bitcoin bulls protect $17K as trader eyes key China BTC price catalyst

China offers a potential leading indicator for Bitcoin price strength with U.S. economic data due next week.

Bitcoin (BTC) maintained $17,000 support into Dec. 10 ahead of a critical week of macro data.

CPI print will make Fed “slow down”

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it traded sideways after the close of trading on Wall Street.

The pair looked set for a quiet weekend, with all eyes focused on United States inflation readings and policy updates due from Dec. 13 onward.

With the Producer Price Index (PPI) November print behind it, the month’s Consumer Price Index (CPI) results took center stage.

As Cointelegraph reported, expectations remain that CPI will show U.S. inflation continuing to abate, sparking renewed strength in risk assets, including crypto.

“My personal expectations are that we’ll be seeing CPI come in at 7.0-7.2%, Core CPI at 5.9-6.1% and that we’ll have a big impact on the markets again,” Michaël van de Poppe, founder and CEO of trading firm Eight, wrote in a Twitter thread on the topic.

Van de Poppe added that the Federal Reserve’s Federal Open Market Committee (FOMC) meeting on Dec. 15 should respond in kind should that outcome result.

“FOMC to pause and slow down after this event,” he predicted.

Macro economist and stocks analyst James Choi, meanwhile, produced a list of stock market catalysts as the week closed, these including emerging markets and “never ending suppression” in the VIX volatility index.

“USA Peak inflation, Weaker $USD, China reopening are making some great investing opportunities. Chinese Real estate ETF $CHIR up staggering 80% since November. Unbelievable,” he added.

*U.S. dollar index (DXY) 1-day candle chart. Source: TradingView*

China gets Bitcoin bulls excited

Continuing on China, crypto analyst and trader TechDev outlined a potential leading indicator for Bitcoin strength in the form of the Chinese ten-year bond yield versus the U.S. Dollar Index (DXY).

Now heading higher, if history repeats itself, BTC/USD could benefit in kind, he said in one of several Twitter posts this week.

“Few signals have correlated with Bitcoin’s macro inflections as tightly as China’s 10-year yield,” further commentary read:

“Local tops at major $BTC impulse tops. Local CN10Y downtrend breaking with 3W RSI exceeding 50… Began each of Bitcoin’s last 3 largest moves.”

*China 10-year bond yield vs. BTC/USD annotated chart. Source: TechDev/ Twitter*

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

BTC price tests $17K on PPI as Bitcoin analysts eye CPI, FOMC catalysts

Bitcoin begins to deal with fresh U.S. macro cues as BTC price steadily holds $17,000 support.

Bitcoin (BTC) fell on the Dec. 9 Wall Street open as United States economic data appeared to disappoint markets.

Attention turns to Bitcoin vs. CPI “big trigger”

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dipping to come closer to $17,000 after passing the level overnight.

The pair reacted badly to U.S. Producer Price Index (PPI) data, which despite being above expectations, still beat the readout from the month prior.

“Bit of an over reaction towards PPI, which has been dropping significantly from last month, but less than expected,” Michaël van de Poppe, founder and CEO of trading firm Eight, responded.

Van de Poppe, like others, noted that the crux of macro cues would come next week in the form of Consumer Price Index (CPI) print for November.

“CPI next week is the big trigger, just like it was earlier this month,” he added.

CPI could be a seminal point, trading firm QCP Capital continued, as if it were to continue its downward trend, markets may get an even stronger conviction over lower inflation greeting the new year.

The Federal Reserve’s Federal Open Market Committee (FOMC) meeting days later, where policymakers decide on interest rate hikes, should add fuel to the fire.

“Tuesday’s CPI will yet again be ‘the most important CPI release ever,’ this time because the market has set it up to be with its epic 2-month short squeeze rally,” QCP wrote in a market update on the day:

“At the FOMC, Fed members will release their updated projections of inflation and interest rates. Markets will focus on where they forecast inflation next year, as well as where they see rates in 2023 and 2024. Both these events are the last remaining hurdles for the rally into year-end.”

Analysts acknowledged that if CPI were to disappoint, it would potentially “invalidate” the stocks’ rally so far. A 50-basis-point rate hike had a 77% probability of occurring, according to CME Group’s FedWatch Tool.

*Fed target rate probabilities chart. Source: CME Group*

U.S. dollar catches a break

U.S. equities were flat after the first hour’s trading, with PPI failing to make a significant dent in performance.

For macroeconomist and stocks analyst James Choi, this was to be expected, given that the Fed was already considering decreasing the pace of its rate hikes.

“The FED already pivoted its course. Today’s PPI won’t make a dent to Powell’s plan. It’s 50bp next week, then that’s it,” he forecasted, also saying that his calculations predicted a “much, much lower” CPI reading than many believed.

Meanwhile, the U.S. dollar strength also simmered, the U.S. Dollar Index (DXY) attempting to make up for the previous day’s lost ground on the back of PPI.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Bitcoin takes liquidity near $17K as US dollar shows weakness pre-CPI

BTC price action targets $17,000 amid gently increasing volatility, with a week to go until U.S. inflation data.

Bitcoin (BTC) ranged below $17,000 at the Dec. 8 Wall Street open as the U.S. dollar threatened further weakness.

Dollar dips as stocks see modest upt

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD practically flat over the 24 hours to the time of writing.

With macro cues lacking, analysts eyed a potential breakdown in U.S. dollar strength as the next volatility catalyst for crypto and risk assets.

The U.S. dollar index (DXY) looked set to challenge multi-day support, wicking below 105 multiple times on the day.

“$DXY’s first time under the 100 day MA since June of ‘21,” Joe Cariasare, co-host of the Inside Bitcoin podcast, noted.

Trader and analyst Pierre added that both DXY and the S&P 500 could nonetheless trade sideways until the Consumer Price Index (CPI) print for November comes in on Dec. 13.

The event, as Cointelegraph reported, is a classic temporary volatility trigger.

“In the meantime, both SPX and DXY still hovering around their respective D1 200 EMA,” chart comments read.

“DXY flipping it resistance so far, while SPX sitting at D1 uptrend, important level to defend. Both looking like all they want is more and more chop until next week CPI.”

On BTC/USD, popular trader Daan Crypto Trades expected the trading range to expand a absorb liquidity both above and below spot.

“$BTC In a very tight range here with tons of untapped highs and lows,” he told Twitter followers.

“I think all these levels will get taken out and that the initial move will likely become a fakeout only to retrace and take the other side. Would definitely be a classic Bitcoin move.”

*BTC/USD annotated chart. Source: Daan Crypto Trades/ Twitter*

“Final phase” of the Bitcoin bear market?

Further modest tailwinds came from U.S. stocks during the first hour’s trading on Wall Street.

The S&P 500 was up 1% at the time of writing, while the Nasdaq Composite Index was 1.2% higher. The move went some way to copying a day of relief in Asia, where trading ended with Hong Kong’s Hang Seng 3.4% higher.

Looking at longer timeframes, however, the picture remained downbeat on Bitcoin for many.

Popular commentator Byzantine General went on record to declare the likely beginning of the 2022 bear market’s darkest phase.

“Perps volume is in a pretty strong downtrend now. Market contracting, speculators capitulating,” he wrote, referring to perpetual futures markets.

“We’re probably entering the final phase of the bear. But that last phase can last pretty long.”

Data from Coinglass additionally showed open interest in futures continuing to decline.

*Bitcoin futures open interest chart. Source: Coinglass*

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

BTC price levels to watch as Bitcoin holds $17K into the market open

BTC price strength allows cautious Bitcoin traders outline targets above $17,500.

Bitcoin (BTC) cooled volatility above $17,000 into the Dec. 5 Wall Street open as traders confirmed upside targets.

Bitcoin traders warm to near-term upside

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it held overnight gains, having hit three-week highs.

The weekly close itself was encouraging for some, forming Bitcoin’s highest since the FTX scandal broke.

Now, traders were hoping that upside would continue toward $20,000, with various resistance zones in play.

“Slowly, but surely, Bitcoin is grinding upwards. Needs to crack $17.4-17.6K, but then we most likely continue quite fastly towards $19K,” Michaël van de Poppe, founder and CEO of trading firm Eight, wrote in an update on the day.

A further post offered a BTC/USD chart with relevant price levels of interest.

*BTC/USD annotated chart. Source: Michaël van de Poppe/ Twitter*

Fellow trader Titan of Crypto flagged $18,500 as a formidable resistance zone to watch, while a daily close above $17,167 would be “encouraging.”

“Are we leaving the range this week?” trader DoopieCash queried alongside a chart showing $17,552 as clinch level on daily timeframes.

*BTC/USD annotated chart. Source: DoopieCash/ Twitter*

A still-optimistic Moustache meanwhile pointed to a classic bottoming pattern, the inverse head and shoulders, “in full swing” on the 12-hour chart.

*BTC/USD annotated chart. Source: Moustache/ Twitter*

Dollar strength faces tense week

Eyes were meanwhile on United States equities as Asian markets had another strong day’s trading.

Hong Kong’s Hang Seng was up 4.5% on the day, while the Shanghai Composite Index managed nearly 1.8%.

The U.S. dollar remained a focus within the macro picture, with the U.S. dollar index (DXY) near five-month lows in what could yet be a boon for Bitcoin.

Sven Henrich, founder of NorthmanTrader, meanwhile noted the ongoing inverse correlation between DXY and the S&P 500.

“A key chart to navigating markets in past few months: The US dollar $SPX directional correlation. Still sitting at 95%,” part of Twitter comments mentioned on the day.

*U.S. dollar index (DXY) vs. S&P 500 annotated chart. Source: Sven Henrich/ Twitter*

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

BTC price levels to watch as Bitcoin holds $17K into the Wall Street open

BTC price strength allows cautious traders to outline targets above $17,500.

Bitcoin (BTC) volatility cooled above $17,000 into the Dec. 5 Wall Street open as traders confirmed upside targets.

Bitcoin traders warm to near-term upside

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it held overnight gains, having hit three-week highs.

The weekly close was encouraging for some, forming Bitcoin’s highest since the FTX scandal broke.

Now, traders are hoping that upside will continue toward $20,000, with various resistance zones in play.

A further post offered a BTC/USD chart with relevant price levels of interest.

Fellow trader Titan of Crypto flagged $18,500 as a formidable resistance zone to watch, while a daily close above $17,167 would be “encouraging.”

“Are we leaving the range this week?” trader DoopieCash queried alongside a chart showing $17,552 as clinch level on daily timeframes.

A still-optimistic trader who tweets under the alias “Moustache” meanwhile pointed to a classic bottoming pattern — the inverse head and shoulders — “in full swing” on the 12-hour chart.

Dollar strength faces tense week

Eyes were meanwhile on United States equities after Asian markets had another strong day’s trading.

Hong Kong’s Hang Seng was up 4.5% on the day, while the Shanghai Composite Index managed a nearly 1.8% gain.

The U.S. dollar remained a focus within the macro picture, with the U.S. Dollar Index (DXY) near five-month lows in what could yet be a boon for Bitcoin.

Sven Henrich, founder of NorthmanTrader, meanwhile noted the ongoing inverse correlation between DXY and the S&P 500.

“A key chart to navigating markets in past few months: The US dollar $SPX directional correlation. Still sitting at 95%,” he tweeted.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.