Timing A Dollar (DXY) Trend Reversal And Its Impact On Bitcoin
The DXY Dollar Currency Index is above the 100 level for the first time since the pandemic struck and lax monetary policy sent Bitcoin — and inflation rates — soaring. When or will the trend weaken, and what might continued strength or sudden reversal mean for Bitcoin and the rest of crypto? Fed Rate Hike […]
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Bitcoin price is back trending upward after reclaiming $50,000 and the pivotal $1 trillion market cap level. With new all-time highs in sight, the only factor that could have a dramatic impact on the current crypto market trend, is a reversal in the dollar. This reversal has been brewing for some time, but has yet to come to fruition. It’s now decision time, and what happens in the dollar in the next 24 to 48 […]
Bitcoin price is currently on the ropes, potentially about to lose support at around $56,000. But could the recent weakness in the cryptocurrency market be more a factor of a strong dollar? TD Sequential Triggers Anti-Correlated Signals On BTCUSD, DXY Weeks ago, we posed the question if or not the Dollar Currency Index making new highs in 2021 was a dangerous situation for Bitcoin. After more than $10,000 per coin was wiped off the price of BTC, the answer was a resounding yes. But much like the cryptocurrency uptrend in late 2020 and early 2021 came to an abrupt halt, even the....
Analysts and traders strongly adhere to the “Bitcoin is inversely correlated to the strength of the U.S. dollar index” thesis, but a closer look at the data suggests otherwise. Presently, there seems to be a general assumption that when the U.S. dollar value increases against other global major currencies, as measured by the DXY index, the impact on Bitcoin (BTC) is negative.Traders and influencers have been issuing alerts about this inverse correlation, and how the eventual reversal of the movement would likely push Bitcoin price higher.Analyst @CryptoBullGems recently reviewed how the....
In technical analysis, traders interpret the head and shoulders formation as a strong sign that a trend reversal is in process. Traders tend to focus too much on timing the right entry to a trade, but very few focus on developing a strategy for exiting positions. If one sells too early, sizable gains are left on the table and if the position is held for too long, the markets quickly snatch back the profits. Therefore, it is necessary to identify and close a trade as soon as the trend starts to reverse.One classical setup that is considered reliable in spotting a trend reversal is the....
Bitcoin could soon see a bullish trend reversal as an on-chain indicator suggests it will do so. The on-chain indicator has predicted a number of notable price trends over the past few years. For one, during 2017’s bull market, the indicator formed a number of bounces off the 1.0 reading. Other fundamental trends also suggest that the prevailing Bitcoin trend is bullish. Bitcoin Could See a Bullish Trend Reversal Very Shortly: Key On-Chain Analysis Bitcoin […]