Bitcoin: DXY reversing now increase odds of a parabolic run
DXY has been tracing a giant triangle on its weekly chart (see green lines). If DXY reverses now and falls -6.5% as depicted with the pink squiggle above to complete the triangle, this leaves room for Bitcoin to explode to the upside. Every single parabolic run on Bitcoin occured when DXY was falling. The only reason I can think of that would cause DXY to fall is because of Omicron. As you know, the Fed and other central banks around the world were ready to begin tightening. However, the unexpected appearance of Omicron this December and its surprisingly fast contagion (even if less dangerous) may throw a wrench to all the central banker's plans. Instead of tightening, they may wait a couple months to let the economy recover from that hit. This is precisely what would make Bitcoin and other digital assets explode. Central banks delaying means the policies are turning dovish, which makes DXY go down, inflationary forces strenghen and thus digital assets boom. This means Bitcoin could have a strong first half of 2022.
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