Looking for a high timeframe dose of bullish optimism? Below is one of Papi's theories:
Knowing how US Dollar Index (DXY) and the Bitcoin and crypto markets have an inverse correlation (meaning when DXY is dropping, Bitcoin often responds by rising).
So knowing that the narrative around the USD/petrol dollar is weakening, after the Russia sanctions leave some nations to question their dependence on the USD; massive printing and inflation of the dollar, AND lastly this is happening as we approach a multi-decade resistance level for DXY.
Okay, so what does that mean, Papi? Well look at the last two taps on this DXY resistance - it triggered a steep correction for the US Dollar, and helped to birth two bull markets for crypto (2017 and 2020).
And if you recall my post above- rumor is that the whales who set the floor in the lower
30S in January/February are the same ones still accumulating in this range-
SO - my theory is what if they are positioning for the possibility of another bull run, largely based on the impending (possibly) rejection of the DXY against this resistance?
What comes next? Until the DXY rejects (if it does), Bitcoin appears to be ranging with a weak bearish bias in this range of lower $40s.. possibly wicking down to the30S if we see some bad news. This week you will want to keep tabs on the Consumer Price Index (CPI) that measures inflation; and depending on how markets receive it, we might see a bit of a dump or pump follow.
Knowing how US Dollar Index (DXY) and the Bitcoin and crypto markets have an inverse correlation (meaning when DXY is dropping, Bitcoin often responds by rising).
So knowing that the narrative around the USD/petrol dollar is weakening, after the Russia sanctions leave some nations to question their dependence on the USD; massive printing and inflation of the dollar, AND lastly this is happening as we approach a multi-decade resistance level for DXY.
Okay, so what does that mean, Papi? Well look at the last two taps on this DXY resistance - it triggered a steep correction for the US Dollar, and helped to birth two bull markets for crypto (2017 and 2020).
And if you recall my post above- rumor is that the whales who set the floor in the lower
30S in January/February are the same ones still accumulating in this range- SO - my theory is what if they are positioning for the possibility of another bull run, largely based on the impending (possibly) rejection of the DXY against this resistance?
What comes next? Until the DXY rejects (if it does), Bitcoin appears to be ranging with a weak bearish bias in this range of lower $40s.. possibly wicking down to the
30S if we see some bad news. This week you will want to keep tabs on the Consumer Price Index (CPI) that measures inflation; and depending on how markets receive it, we might see a bit of a dump or pump follow.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.