dxy is banded and cyclical. btc is the inverse reflection of this cycle because there are more and more dollars each dxy (fed) cycle. So much so that there are 2 scenarios:
1 where the fed keeps credibility (light blue fed normal in chart) and the cycle keeps being bounded. 2nd is when the fed does loses its credibility (green fed optimal in chart) and the cycle breaks and the bands get tested above and below after which the strength of the dollar drops due to mass inflating by the fed.
Btc would react to both those events in a corresponding way (orange btc when fed normal, red when fed optimal). More total dollars means inflation in all things in the end so the outcome should be clear, the system is doomed to fail.
Long
BTCUSD
Short (even though you can't)
DXY
1 where the fed keeps credibility (light blue fed normal in chart) and the cycle keeps being bounded. 2nd is when the fed does loses its credibility (green fed optimal in chart) and the cycle breaks and the bands get tested above and below after which the strength of the dollar drops due to mass inflating by the fed.
Btc would react to both those events in a corresponding way (orange btc when fed normal, red when fed optimal). More total dollars means inflation in all things in the end so the outcome should be clear, the system is doomed to fail.
Long
BTCUSD
Short (even though you can't)
DXY