Why can't we expect Bitcoin to rise in the next 1 to 2 years?
In this article we are going to find out why bitcoin price can't rise in the next 1 to 2 years.
For this review, we have to check 2 charts. Also this analysis are long-term analysis and on monthly chart.
First of all, lets have some idea on US Dollar Index Monthly chart.
The reason that we are checking this chart is its negative correlation with S&P500.
Monthly chart of DXY is in 15 months tight bull channel. Tight channels are breakouts and breakouts usually have 2nd legs. It's moving strongly upward currently and I myself see any bearish movement as correction and see bulls below. Bulls will buy any PBs. As we are checking the monthly chart, we know that any correction or trend resumption takes months. So DXY is strongly bullish and don't look for bearish scenarios at least now!
((Simply, when the dollar index becomes strong and interest rates rise, people start selling their stocks and prefer to keep their money in cash or in the bank. This is why the stock indices fall. On the other hand, bitcoin has positive correlation with S&P500. So it will rise if SPX rise and fall with SPX falling.))
On the other hand, lets see what we have in BTC monthly chart. Market movements usually happen within 2 legs and after that, some correction happens. We have 2 legs down on BTC chart but as we see, its too tight. If BTC breaks the bear trendline, I think it won't going too far away and it will be reversed soon. 10 months tight channel, small PBs, consecutive bear bars, all of them together means strong selling pressure. Any bullish movement will be sold with the context we see here. As we are checking the monthly chart, we know that any correction or trend resumption takes months.
For this review, we have to check 2 charts. Also this analysis are long-term analysis and on monthly chart.
First of all, lets have some idea on US Dollar Index Monthly chart.
The reason that we are checking this chart is its negative correlation with S&P500.
Monthly chart of DXY is in 15 months tight bull channel. Tight channels are breakouts and breakouts usually have 2nd legs. It's moving strongly upward currently and I myself see any bearish movement as correction and see bulls below. Bulls will buy any PBs. As we are checking the monthly chart, we know that any correction or trend resumption takes months. So DXY is strongly bullish and don't look for bearish scenarios at least now!
((Simply, when the dollar index becomes strong and interest rates rise, people start selling their stocks and prefer to keep their money in cash or in the bank. This is why the stock indices fall. On the other hand, bitcoin has positive correlation with S&P500. So it will rise if SPX rise and fall with SPX falling.))
On the other hand, lets see what we have in BTC monthly chart. Market movements usually happen within 2 legs and after that, some correction happens. We have 2 legs down on BTC chart but as we see, its too tight. If BTC breaks the bear trendline, I think it won't going too far away and it will be reversed soon. 10 months tight channel, small PBs, consecutive bear bars, all of them together means strong selling pressure. Any bullish movement will be sold with the context we see here. As we are checking the monthly chart, we know that any correction or trend resumption takes months.