Time for DXY to swing up - BTC to correct down?
The inverse correlation between USD currency index DXY and BTC is well known. Now DXY is kindly letting us know that it is going to turn its price action up, at least temporarily. There is a very distinct bullish divergence forming on RSI, the same way it formed in August. Then the price of DXY made three lower lows while RSI was moving up before the price started to make higher lows. Now DXY has made its first lower low of that kind.
What is BTC going to do if DXY starts going up? It retraces. If things work out as they did in August and September this is how it could go:
- DXY makes 1 or 2 more lower lows stopping at the strong support zone around 89
- BTC slows down its ascent and turns its nose down
- DXY climbs up to the level of 91.5-92
- BTC retraces 20-25% (in September 21%) taking the price to 22,5-24k support zone
- DXY continues its journey down
- BTC continues its journey up
This is just one plausible scenario. We all know things could go differently, so DYOR.
Trade safe and take care.
Cheers Whoop
What is BTC going to do if DXY starts going up? It retraces. If things work out as they did in August and September this is how it could go:
- DXY makes 1 or 2 more lower lows stopping at the strong support zone around 89
- BTC slows down its ascent and turns its nose down
- DXY climbs up to the level of 91.5-92
- BTC retraces 20-25% (in September 21%) taking the price to 22,5-24k support zone
- DXY continues its journey down
- BTC continues its journey up
This is just one plausible scenario. We all know things could go differently, so DYOR.
Trade safe and take care.
Cheers Whoop
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