BitcoinLong
The US Dollar Index says the bitcoin bullrun is over.
Comparing the US dollar index to bitcoin is very helpful. Bitcoin often does the opposite of what the DXY does. This chart says the bullrun is over. Let's dive in and compare.
The blue verticle lines on both charts are the day that bitcoin peaked in 2017 and when bitcoin peaked in 2021. I lined up the DXY(us dollar index) up with bitcoin so you can see the similarities. Look how similar the DXY was in 2017's bullrun peak to 2021's bullrun peak. Virtually identical structure inside the downsloping channel.
While going down in the downsloping channel, bitcoin has a good bull run. It did this the same in 2017 and 2021.
Once the dxy left the downsloping channel in 2017/2018... the bullrun was over. It eventually made a 618 retrace. At the point the dxy made the 618 retrace, that was the end of the bitcoin bear market. The 618 retrace and bottom of the 2018 bitcoin market are the 2 yellow arrows.
So... will that repeat? Will the dxy do a 618 retrace (the blue arrow)? Will that be the bottom of the bitcoin market? Honestly too soon to tell. But it's a good place to start thinking about buying bitcoin again.
The DXY says we have a capitulation coming. It does not say how low. Just that it's coming.
The blue verticle lines on both charts are the day that bitcoin peaked in 2017 and when bitcoin peaked in 2021. I lined up the DXY(us dollar index) up with bitcoin so you can see the similarities. Look how similar the DXY was in 2017's bullrun peak to 2021's bullrun peak. Virtually identical structure inside the downsloping channel.
While going down in the downsloping channel, bitcoin has a good bull run. It did this the same in 2017 and 2021.
Once the dxy left the downsloping channel in 2017/2018... the bullrun was over. It eventually made a 618 retrace. At the point the dxy made the 618 retrace, that was the end of the bitcoin bear market. The 618 retrace and bottom of the 2018 bitcoin market are the 2 yellow arrows.
So... will that repeat? Will the dxy do a 618 retrace (the blue arrow)? Will that be the bottom of the bitcoin market? Honestly too soon to tell. But it's a good place to start thinking about buying bitcoin again.
The DXY says we have a capitulation coming. It does not say how low. Just that it's coming.
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