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What’s behind the Bitcoin Chart that you can’t miss

Bitcoin price quoted in US dollars suffered a sharp and sudden downtrend after hitting a new all-time high in November. But when it is quoted in Turkish Lira, the top cryptocurrency continued to rise in November and has never looked back.

The result? A shocking cryptocurrency price chart that you simply have to see to be believed. We’ll also explain the background to the devastating downtrend in TRYUSD.

BTCTRY: Bitcoin is making a bullish bet against ailing currencies

Throughout the history of Bitcoin price action, the notoriously volatile cryptocurrency would explode to a cycle high after a higher high. But recent macro concerns about the Federal Reserve’s plans to hike rates caught any upside momentum.

Related reading | This Bitcoin Morning Star could brighten up the bullish narrative in no time

Instead of new highs at BTCUSD, the top crypto asset by market capitalization has dropped 38%, or around $ 20,000 per coin. However, crypto assets aren’t just trading against the dollar, much like BTC can trade against altcoins like ETH.

Bitcoin trading against the lira looks very different from the dollar | Source: BTCTRY on TradingView.com

Bitcoin can be quoted in euros, yen or, in the case of the graphic above, in the Turkish lira. In the BTCTRY trading pair, the uptrend has to take a breather after the all-time high was broken in early November – not to mention the steep correction in USD.

An omen for the dollar behind the drop in the Turkish lira?

The flight into the dollar caused by the mere mention of rate hikes has decimated assets. The opposite is happening in Turkey. Under President Recep Tayyip Erdoğan, the Turkish central bank has cut interest rates five times by full percentage points since September, plunging the national currency into free fall.

Related reading | Bitcoin Falls Flat: Investigating A Rare Correction Pattern For The Bull Market

During this period, the lira has fallen 50% against the dollar. Inflation in the country has also increased by 21%. The central banks in Turkey have tried several times, unsuccessfully, to intervene and sell the country’s USD reserve.

Dollar lira tryusd

The Lira is in free fall against the USD | Source: TRYUSD on TradingView.com

In response to concerns about inflation, Erdoğan has raised the minimum wage by 50%, which, according to Marek Drimal of Société Générale, “along with the cumulative effects of the weakness of the lira will further fuel inflationary pressures”.

In addition, further, unspecified measures are promised. But will they work? The lira is an example of what happens when there are no more levers to pull. The Federal Reserve has a lot more shock and awe in its war chest, but even it’s struggling to offset markets, inflation, and a currency crisis.

Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis training. Please Note: The content is educational and should not be viewed as investment advice.

Featured image from iStockPhoto, charts from TradingView.com

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