today we wanna talk about something that Is pretty Interesting and quite awesome for Crypto Traders! so we observed the chart of DXY and BTC and from last year they've been moving in the opposite direction! pay attention to the charts! you can see that the price of BTC starting from may 11th 2020 has started a bullish rally while on DXY chart the price has the started a Bearish movement exactly starting from that date! and In a single year DXY has kept Decreasing and BTC kept increasing . starting from may 11th 2021, DXY has started a bullish movement and you can see that the BTC price has started a bearish rally from that point. so we can come to a conclusion that If DXY moves (weather It's Bullish or bearish) BTC always moves in the opposite direction and of course Crypto market follows BTC. So this thing can be quite helpful for Traders such as you to understand the market better.
The strength of the dollar is a good indication of economic stability. When the strength depreciates the greater economy is in a more unstable/uncertain state or whatever you want to call it so people move volume from traditional investments to Bitcoin and visa versa. Your analysis here is profoundly important, keep up the good work friend.
Dynamic_Picks
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Further explanation, I didn't edit last post in time, BTC and DXY Index are always in opposition, in regard to the Dollar's valuation. If DXY is going up that's the dollar building strength against top the top currencies, especially if it's at the 120 level. So yes, your observation is correct but not really a revelation, great self spot though. Forex traders have been aware of this for sometime. In this regard, note, the Dollar is about to build steam in the next 3 to 4 weeks which will drive BTC lower as a matter of fact simply based on historical trend and linear trading cycles so look for significant drop in BTC July end.
Dynamic_Picks
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BTC and DXY Index are always in opposition, that's not a revelation. Because USD is not a fixed asset compared to BTC having limited quantity and for that reason they have opposing store value similar to gold and the dollar. They can approach each other in spread but when BTC goes up the dollar is always going to go down in a comparative setting and vice versa. It's the whole point of the DXY index.
Helical_Trades
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Good brother Axis
Mihai_Iacob
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Wonderful, thank you for sharing
MMBTtrader
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thanks for sharing
neofx11
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This is why the DXY will keep falling and btc will go up
What makes you think the dollar will be strong?? Lol
Dynamic_Picks
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@neofx11, What makes you think the dollar will not be strong? lmao Ridiculous hubristic self-own. DXY has nothing to do with BTC first off, it's the Dollar weighted against the strength of other currencies so has nothing to do with BTC strength on any given day. It's only correlation is that BTC trades currency like and has forex attributes and is considered a store value similar to gold so you can of course find that chart correlation. All it takes though for the DXY to go up is other currencies to go down. Level Up or Down yourself with your comments bud, you're not really showing much but your knee jerk typing ability.