Bitcoin’s recent surge to an all-time high of $111,000 may not be the bullish signal many investors believe it to be, according to certified crypto expert Tony “The Bull” Severino. This analysis comes at a crucial time as global de-dollarization efforts intensify, potentially impacting Bitcoin’s true market value.
Cross-Currency Analysis Reveals Concerning Pattern
While Bitcoin reached $111,814 against the US Dollar, Severino points out a critical divergence: the cryptocurrency failed to achieve new highs against other major currencies. The Euro (€93,229 vs. previous ATH of €105,890), Japanese Yen (¥15.28M vs. ¥17M target), and British Pound all show Bitcoin trading below historical peaks.
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Gold Ratio Indicates Structural Weakness
Perhaps most telling is Bitcoin’s performance against gold (BTC/XAU), currently at 32 ounces compared to its previous peak of 41 ounces. This significant underperformance suggests that Bitcoin’s dollar-denominated rally may be more reflective of USD weakness than cryptocurrency strength.
Technical Analysis and Future Outlook
The current price action at $104,850 represents a critical juncture for Bitcoin. Key support levels between $97,000-$99,000 could determine the next major move. Severino emphasizes watching the May monthly candle close and June open for confirmation of trend direction.
FAQ Section
Why isn’t Bitcoin’s USD all-time high necessarily bullish?
Because the cryptocurrency isn’t showing similar strength against other major currencies or gold, suggesting the rally may be more about dollar weakness than Bitcoin strength.
What key levels should traders watch?
Current support at $104,850 and the critical zone between $97,000-$99,000 are crucial for maintaining bullish momentum.
How does this affect investment strategy?
Investors should consider diversifying their Bitcoin trades across multiple currency pairs rather than focusing solely on BTC/USD.
Time to read: 4 minutes
