Hi, this time bullish perspective.
I checked correlation of BTC and DXY price action and what wasn't surprise for me was that they are inversely correlated. What was interesting is that the most part of BTC upward move took place during relatively small DXY correction and if the history repeats another such correction is around the corder which would result another BTC bull run.
Chart details:
Both charts are scaled to show the same time period. Red and green boxes represents bullish and bearish trends. I also marked the period of the DXY small correction I mentioned above on both charts with the light-green boxes.
AT details supporting this idea:
Both DXY downward moves price action looks very similar.
RSI on DXY during both downward moves looks very similar.
EMA 200 (weekly) during both downward moves behaves same way.
According to EW theory on the DXY chart we still lack of 3rd wave of the downward impulse which should take place right after the correction we should start soon.
DXY is now facing strong resistance.
I checked correlation of BTC and DXY price action and what wasn't surprise for me was that they are inversely correlated. What was interesting is that the most part of BTC upward move took place during relatively small DXY correction and if the history repeats another such correction is around the corder which would result another BTC bull run.
Chart details:
Both charts are scaled to show the same time period. Red and green boxes represents bullish and bearish trends. I also marked the period of the DXY small correction I mentioned above on both charts with the light-green boxes.
AT details supporting this idea:
Both DXY downward moves price action looks very similar.
RSI on DXY during both downward moves looks very similar.
EMA 200 (weekly) during both downward moves behaves same way.
According to EW theory on the DXY chart we still lack of 3rd wave of the downward impulse which should take place right after the correction we should start soon.
DXY is now facing strong resistance.
Comment:
This plays nicely so far ;)