Altcoins Double-Top, DXY Double-Bottom
Should 
DXY move back down to the bottom shown on the chart above, the altcoin market could move back to its top.
Why?
The altcoin market andDXY are significantly negatively correlated, moving in near mirror-images of each other.
DXY correlation with alts (and Bitcoin, Stocks, etc) does cycle into the positive at times, but predominantly remains in negative correlation, long-term. This makes sense, too:
DXY move back down to the bottom shown on the chart above, the altcoin market could move back to its top.- There is also a possibility of this happening if DXY simply moves sideways for an extended period of time.
- However, if DXY moves back up above 105-108, hits 112-116 and continues, expect the altcoin market to move much further down.
Why?
The altcoin market and
DXY are significantly negatively correlated, moving in near mirror-images of each other.DXY correlation with alts (and Bitcoin, Stocks, etc) does cycle into the positive at times, but predominantly remains in negative correlation, long-term. This makes sense, too:
as the dollar index strengthens or inflates, the vast majority of everything that can be purchased with it will lose value
as the dollar index weakens or deflates, we see them gain in value.
Related publications
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.