Bitcoin has created a new opportunity to rise to $40,000 again after the US Dollar Index. Threatens to fall below 100 points as analysts report
Recently, Bitcoin has been slowly gaining ground from the dollar’s weakness as the dollar slumped to a three-month low followingTweetOn July 11, famous trader Mustache suggested that it was time for BTC price history to repeat itself with BTC’s bear market.
DXY “The Most Important Chart” For Bitcoin This Year
Bitcoin’s previous strong inverse correlation with the strength of the dollar has softened this year, but the recent move has been a huge talking point among investors.
information from Cointelegraph Markets Pro and TradingView Showing the US Dollar Index (DXY) to test support at 100 for the first time in months. The dollar previously faced stiff resistance after hitting a 20-year high in 2022.
Mustache believes that as a result of the bearish behavior, the dollar index could quickly fall below 100 points and Bitcoin will outperform the market at an incredible rate.
“Investors please calm down because the storm Big Move is still loading. The first candle of DXY (dollar) is now out of the zone it should have been. Compared to 2016-2017 and 2020-2021, this led to an uptrend in $BTC.”
#Bitcoin – Update🎯
Calm before the storm. Big Move is still loading.
First candle of the DXY (Dollar) now falls OUT of the channel.
This is the point where you want to be positioned.
In 2016-2017 and 2020-2021 this led to the parabolic curve in $BTC. pic.twitter.com/HRrA9S41OP
— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 🧲 (@el_crypto_prof) July 11, 2023
The reason for the dollar was not helped by markets eager to tap a potential reversal point from US interest rate hikes. with falling inflation It seems more likely even with the Federal Reserve. that looks ostentatious
Following the release of the Consumer Price Index (CPI) on July 12, the previous month came out lower than expected, providing additional fuel for risky assets.
Trader Mikybull Crypto Predicts Falling DXY Trend Continues, BTC/USD Hits $35,000
Continuing past comparisons, popular trader Josh Olszewicz calls DXY the “single most important chart” for Bitcoin in 2024.
“DXY shows technical weakness coupled with a reduction in Bitcoin supply, which could lead to an outsized price reaction for Bitcoin after the halving. many months.”
Bitcoin May Be Going Back to $40,000
Adding a broader view, William Clemente, co-founder of crypto analytics firm Reflexivity Research, presented a year-on-year change in DXY versus BTC/USD behavior over the years.
Since everyone wants to talk about DXY (US dollar) weakness, here’s Bitcoin’s price plotted against the YoY change in the DXY: pic.twitter.com/voJAfeF1ok
— Will Clemente (@WClementeIII) July 12, 2023
However, looking back The last time DXY traded at 100 was mid-April 2022. At that time, Bitcoin was around $40,000.
2023-07-13 12:14:01
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