This is great news for the stock market and crypto, because it looks like the DXY index has reached its destination at the top of the ascending parallel channel on the monthly chart.
The end of 2022 and 2023 could be very bullish for the stock and crypto markets! Maybe this is the last time we see Bitcoin below 20 000 USD.
2% inflation is on the table, we had a massive selloff in certain stocks, and they simply cannot fall in a straight line!
If we take a look at the RSI indicator, we are in overbought territory. It pretty much screams for a correction. Then we can make a final uptrend and print a bearish divergence on the 5th wave.
A previous swing high from 2001 is definitely a strong resistance and I believe we will take stop losses above this high before a huge downtrend will be in-play. But not now. It could happen in 2025.
According to my Elliott Wave analysis, I am missing a final impulse wave to the upside, so do not celebrate too much yet. For now, we are ready for an ABC correction to the downside on this chart.
As you can see, we hit the 1.618 FIB extension measured from wave 1 to wave 2. Extremely strong resistance indeed!
Look at my ideas about Bitcoin and the SPX 500 in the related section down below.
Look at DXY back in 1985. It went up without stops. Because it was a political decision to rise DXY up. Now the situation is the same. However now it can brake and go very low, because most countries of the world are tired of the USA debt burden. When this happens buy bitcoin.
nietzsche58
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@vitsha, the political decision meaning is correct. the technic chart may not work. be care!
Tolberti
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If you find this analysis helpful, hit "Like" and "Follow"! Also, post your questions and related ideas here. I look forward to your comments!
Bitgolder
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@Tolberti, DXY is curling over. I agree with you for the most part; however I think that the US dollar is done for a very long time. I dont see a fifth wave coming any time soon or ever for that matter. The dollar is about to trade like Dogecoin all the way down to the low 70s once the rising channel is broken to the downside.
Tolberti
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@Bitgolder, Hmm, it is possible. I hope you are right, I don't want any fifth wave 😂
SquishTrade
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Well done with your counts here. Thank you for sharing.
Solldy
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Thanks for sharing your idea! Great description with good technical analysis. I wonder what metrics you look at initially when analyzing?