Watching the DXY chart I'm concerned about a long term breakout being forecast here, largely because of the impact it will have on Bitcoin. In recent months Bitcoin managed to resist the weight of a rising DXY but I think the convergence of other factors, along with DXY's rise, are growing too much for the market to ignore.
Add to that a confluence of levels that we haven't seen since the incredible rally in 2014/2015, and we we have the -possibility- of a larger rally. We are still observing a rising RSI at levels last since in 2014 immediately prior to that year's rally, and the MACD is in generally the same position as at that time also. Some macroeconomic factors are granting strength to the dollar like stronger than expected retail sales and industrial production, but the US still has to overcome the rising inflation challenges, which also have the potential to strengthen Bitcoin and stifle the DXY.
So all of this is to say that we have an unprecedented convergence of economic factors that haven't yet occurred during Bitcoin's lifecycle, and we'll have to watch both BTC and DXY to see how this plays out.
Add to that a confluence of levels that we haven't seen since the incredible rally in 2014/2015, and we we have the -possibility- of a larger rally. We are still observing a rising RSI at levels last since in 2014 immediately prior to that year's rally, and the MACD is in generally the same position as at that time also. Some macroeconomic factors are granting strength to the dollar like stronger than expected retail sales and industrial production, but the US still has to overcome the rising inflation challenges, which also have the potential to strengthen Bitcoin and stifle the DXY.
So all of this is to say that we have an unprecedented convergence of economic factors that haven't yet occurred during Bitcoin's lifecycle, and we'll have to watch both BTC and DXY to see how this plays out.