We have entered in a quite interesting stage on the market which there are a lot of great signs that the volatility has come into the market right now.
XRP today is looking juicy with a huge upside spike above $0.4 region and currently is leading the pace for all the cryptocurrencies. However, we'll do further detailed analysis later.
What is so important to watch right now is the DXY price action which just like what we have covered on previous analysis, $110 has been broken out and it's now entering major area of resistance.
We may have seen a breach above the.786 Fibonacci level on the monthly time frame but the monthly candlestick hasn't closed yet which means that it's still very premature and it can close right below the area of $110 when it is trending closer to the end of the month.
Another thing is that we are seeing huge resistance trend line which has been holding the price since 2008, simply an insane 13 years trend line which the price need to respect for potential short term pull back.
And because the DXY is having inverse correlation with BTC, we can expect the opposite direction for the BTC as the BTC just like what we covered yesterday is in major support.
This correlation with DXY is very important right now because if the DXY starts to drop, there will be transfer asset from the DXY into another instruments such as stock and cryptocurrency.
Prepare for the short term upside movement in BTC and other cryptocurrencies.
@julio24albert, I also dont get why you make viewers stretch the bottom chart out to match up to the top so we can see the inverse correlation you're describing
alexferdean
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@julio24albert care to explain why aren't you comparing monthly to monthly?
alexferdean
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just because it hit a certain trendline doesn't mean it HAS to drop. It's better to look at the DXY cocktail and the fundamentals. FED has certainly made their position clear, they won't stop even next year. What will cause DXY to have a sharp correction? ECB is behind with raising rates, JPY did the opposite this year, but they just started with rates hiking.