DXY & BTC FOR NIGHT OWLSDXY & BTC FOR NIGHT OWLS
You know, last Friday night I posted that DXY would see a corrective upward move toward the 104–105.3 range—just a corrective rise, mind you.
At this moment, there’s a bit of a conflict between DXY and BTC. DXY wants to edge up slightly to that range after bottoming out around 101.7. Meanwhile, BTC is stuck, unable to rise alongside DXY, even though they’re currently in the same structural boat.
This very “stuck” situation is what gave you a short position down below 74k—lower than the previous bottom of 76k. So now, as DXY climbs, BTC has the conditions to follow DXY’s lead.
Here’s a key reminder: right now, DXY, BTC, and stocks (CK) are on the same team.
XAU (gold), GBP, and EUR are on the opposing team.
In the medium term, the gold camp has already taken profits, and naturally, GOLD will decline. Medium-term money is shifting back to USD and BTC.
Will this shift provide enough momentum for BTC to surge strongly again? I don’t think so—not yet. DXY will likely cut interest rates soon, and the act of devaluing the US dollar’s peg will kick off shortly after.
Enjoy the read!