$BTC being a silly goose
Traded against the dollar, Bitcoin should be inversely correlated to dollar movements. Instead we see an unusual state here in which Bitcoin is rallying with a similar momentum to the Dollar Index.
We also see a divergence between Bitcoin and the S&P500 which are also correlated in broader market terms with Bitcoin rallying whilst the stock market pulls back.
Harking back to where Bitcoin collapsed, it was only when the DXY broke out of it's key zone. The local key zone for DXY currently is 105.2 ~ . Bitcoin could continue to go higher no doubt but it could be very high reward:risk to take a short on a DXY break of 105.2, especially if Bitcoin continues to trade in oversold conditions.
We also see a divergence between Bitcoin and the S&P500 which are also correlated in broader market terms with Bitcoin rallying whilst the stock market pulls back.
Harking back to where Bitcoin collapsed, it was only when the DXY broke out of it's key zone. The local key zone for DXY currently is 105.2 ~ . Bitcoin could continue to go higher no doubt but it could be very high reward:risk to take a short on a DXY break of 105.2, especially if Bitcoin continues to trade in oversold conditions.
Note
IMPORTANT UPDATE:after checking candlestick chart, the area for DXY is 105.8 not 105.2
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.