U.S. Dollar IndexShort
🔥 The Dollar Is Signaling More Crypto Pain
In recent months I've been making several analyses on the dollar index (DXY) versus Bitcoin. In previous analyses we've seen that the dollar and crypto are inversely correlated: a bullish dollar is generally bad for crypto, a bearish dollar is generally bullish for crypto. See below for one of my DXY analyses a couple of weeks back.
It appears that the DXY indeed found support on the dotted purple trend line and is now seeing strong bullish price action. Consequently, BTC and other risky assets started to drop.
I'd wager that its likely that the DXY will continue to move up. This would lead to further bearishness in the crypto and stock markets and could potentially lead to a new low for BTC.
We've got a lot of interesting macro data coming up soon, think CPI and FED interest rates. Gonna be interesting to see the DXY and BTC interact with each other.
As a final note, check out the vertical yellow line. The DXY topped and BTC bottomed at the exact same time.
It appears that the DXY indeed found support on the dotted purple trend line and is now seeing strong bullish price action. Consequently, BTC and other risky assets started to drop.
I'd wager that its likely that the DXY will continue to move up. This would lead to further bearishness in the crypto and stock markets and could potentially lead to a new low for BTC.
We've got a lot of interesting macro data coming up soon, think CPI and FED interest rates. Gonna be interesting to see the DXY and BTC interact with each other.
As a final note, check out the vertical yellow line. The DXY topped and BTC bottomed at the exact same time.
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