U.S. DOLLAR INDEX LOOKS BULLISH! NOT GOOD FOR BTC!!
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Welcome to this important update on the U.S. Dollar index. Of course, BTC is an independent asset class but it is somehow correlated with the U.S. Dollar index. Bitcoin has a negative correlation with the U.S. Dollar index. In other words, when the U.S. dollar rises, then, as a rule, BTC tends to fall. I’ll also add that there is rarely a positive correlation between BTC and the U.S. dollar.
Now, let's go to the chart.
Here I show you a chart of the U.S. Dollar index in the 2-week time frame.
As you see in the chart, it is forming an Adam&Eve pattern where breakout and retest are already done. After the successful retest, it is continuously going up.
It has strong resistance at around 103 level which is not broken since 2000-2001. The last time the U.S. Dollar index was traded above the 103 level was in 2000-2001. So if we broke above that level this time then it is very bad for the cryptocurrency market.
As of now, BTC is holding crucial support of 39k. Few hours left for the weekly close. If we get the weekly close below
39K then things become ugly. So my advice is to stay aside from the market for a while. Wait for some confirmation is the much better option here.
Let's see how we get the weekly close.
Hope I'll clear all your points and you understand the relation between the U.S. Dollar index and BTC.
If you like this idea then do support it with like and follow.
Also, share your views in the comment section.
Thank You!
Welcome to this important update on the U.S. Dollar index. Of course, BTC is an independent asset class but it is somehow correlated with the U.S. Dollar index. Bitcoin has a negative correlation with the U.S. Dollar index. In other words, when the U.S. dollar rises, then, as a rule, BTC tends to fall. I’ll also add that there is rarely a positive correlation between BTC and the U.S. dollar.
Now, let's go to the chart.
Here I show you a chart of the U.S. Dollar index in the 2-week time frame.
As you see in the chart, it is forming an Adam&Eve pattern where breakout and retest are already done. After the successful retest, it is continuously going up.
It has strong resistance at around 103 level which is not broken since 2000-2001. The last time the U.S. Dollar index was traded above the 103 level was in 2000-2001. So if we broke above that level this time then it is very bad for the cryptocurrency market.
As of now, BTC is holding crucial support of 39k. Few hours left for the weekly close. If we get the weekly close below
39K then things become ugly. So my advice is to stay aside from the market for a while. Wait for some confirmation is the much better option here. Let's see how we get the weekly close.
Hope I'll clear all your points and you understand the relation between the U.S. Dollar index and BTC.
If you like this idea then do support it with like and follow.
Also, share your views in the comment section.
Thank You!
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