Bitcoin manages to hold on despite rate policy concerns

Traders witnessed another day of battle for control of Bitcoin’s $19,200 support level, as there was seldom any change to the persistent choppy price action in the crypto market during trading on Wednesday.

The US dollar’s Index, DXY, rebounded and so, spiked above 113 near midday after hitting a low of 111.78 on Tuesday. The US dollar also practised pressure on global financial markets and dragged the major stock market indices into the red territory.

Oil was the one exception to the widespread weakness, up 3.66% on the day at the time of writing. Wednesday also witnessed attempts by Bitcoin bears to break below support at $19,200 defended by bulls, keeping the top crypto squarely in the middle of the trading range it has been oscillating in since late August.

The current price action could seem boring, and at the same time should not guarantee any false sense of trust or security. Cryptocurrencies entail a big deal of caution as they are gaining value as unique alternative assets.

Bitcoin’s struggles in recent months as the Fed embarked on its most aggressive tightening in 40 years makes sense and constitute depressing factor for risk assets in 2022, but the fact that BTC didn’t see further declines with the latest round of rate-hike expectations.