Last week the DXY closed as a "Shooting Star", a strongly bearish candlestick pattern.
Now, this pattern as it happens with many others needs some context in order to be of value.
For example, the Shooting Star needs to happen at the top of a trend, which is obvious here as the DXY grew straight up since mid-July.
The next requirement is confirmation and this can happen anytime... As long as the DXY trades below 107.348, this bearish signal remains valid, in place.
✔️ 11 Weeks closing green... Amazing.
✔️ It is normal to see a correction after a strong move.
✔️ We shouldn't be surprised if a strong drop in this index starts to develop any day.
👉 If the DXY goes down, Bitcoin goes up.
Namaste.