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jpbrown1023

BITCOIN: With the DXY Threatening to Spike, BTC Might Fall a Bit

Bitcoin (COINBASE:BTCUSD)  
jpbrown1023 Updated   
COINBASE:BTCUSD   Bitcoin
Trend Analysis Chart Patterns Technical Indicators Bitcoin (Cryptocurrency) BTCUSD BTC BTCUSDT BTCUSDC BTCEUR btcusdanalysis btcusdlong
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trendanalysis chartpattern indicator bitcoin btcusd btc btcusdt btcusdc btceur btcusdanalysis btcusdlong
I'm watching the DXY carefully. It is long overdue for bounce since peaking in September. With the DXY threatening to spike and Bitcoin jumping 66% from the $15k lows to a key resistance level at $25k, it wouldn't surprise me to watch the DXY to run for a bit while Bitcoin retraces. Naturally it makes sense if the dollar index becomes stronger that every thing measured in dollars becomes weaker. We have a possible completed 5wave pattern. If BTC were to correct from here, we could have an inverse head and shoulders setup. With things so bullish, I would be looking for a shallow right shoulder. However given the bullish sentiment around BTC and the crypto over the past 6 weeks, I would not be surprised to see a wick down to the .618 as big money tries to flush out the over-leveraged longs. BTC has fallen $500 since I started writing so we may have already begun. Be patient and don't get greedy. I'll be using the DXY and BTC/Dow price action as my barometers.
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Comment:
The markets are feeling the pressure from the DXY now.
snapshot
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BTC broke down like we expected as the DXY broke out. We hit the .5 Fib retracement level. If we do not bounce here, I'll be looking to the .618 level aroudn $19,200.
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