BTC and DXY - Inverse Relationship - Spicy for BTC?
We spoke about this before, but the US Dollar Index has a generally inverse relationship to the crypto markets, and Bitcoin specifically. Looking at the past few cycles, you see a very clear correlation, when DXY rises, Bitcion sinks, and when the DXY drops, Bitcoin rose.
If you look at the 2017 cycles, its perfectly played out. And even 2021, we saw the proper bull market end in Q2 as DXY began to ascend, and -surprise- Bitcoin begin to rally when we rejected from this resistance.
Oddly this also correlates nearly perfectly with the bullish>bearish>bullish inversions of the 20/21w moving averages I've outlined in earlier analysis.. so we also have high-timeframe confluence.
Considering the sheer amount of dollars printed in recent years, the massive inflation.. could the dollar be rejecting from this 20 year resistance and continue it's slow death spiral? And if it does, will we see another crypto bull market rise?
This analyst thinks its possible. The coming month(s) will be revealing, if we make it past March with a semblance of an uptrend, then Bitcoin may decouple from broader markets and perhaps prove itself the hedge against inflation that is oft memed.
If you look at the 2017 cycles, its perfectly played out. And even 2021, we saw the proper bull market end in Q2 as DXY began to ascend, and -surprise- Bitcoin begin to rally when we rejected from this resistance.
Oddly this also correlates nearly perfectly with the bullish>bearish>bullish inversions of the 20/21w moving averages I've outlined in earlier analysis.. so we also have high-timeframe confluence.
Considering the sheer amount of dollars printed in recent years, the massive inflation.. could the dollar be rejecting from this 20 year resistance and continue it's slow death spiral? And if it does, will we see another crypto bull market rise?
This analyst thinks its possible. The coming month(s) will be revealing, if we make it past March with a semblance of an uptrend, then Bitcoin may decouple from broader markets and perhaps prove itself the hedge against inflation that is oft memed.