That is the question today. Every once in a while, we get bullish dollars on this channel and we will happily admit it. Right now looks like that time for a short period. The main reason we do this is dollar cost averaging assumes you always have money to throw in! That may not be the case for the average person so we want to be able to help people protect their capital. Let’s hop into the chart.
So now looking at the technical indicators, we can see that the RSI is putting in a bullish divergence. This is the first sign of a market turning. If we see the dollar trend to the 3D 21 period moving average, we could see a 15% drop before we have any support. Now this doesn’t mean that BTC will go down 15%, the dollar could go up 2% and then BTC could go down 7.5% or vice versa. This is an intermarket analysis chart that we like to use as a check. The argument of if the markets are correlated is a silly one. At some points, the market will be tied to the VIX. Other times its the SPY correlation that we have to watch. Last but certainly not least, we have to watch the dollar. Even if they aren’t correlated, they are related at least!
So let’s see how this plays out. Overbought indicators in the crypto market as a whole and a dollar that is looking to outperform BTC. We will be watching to see what happens!
Brandon Anderson
www.derzzycharts.com
So now looking at the technical indicators, we can see that the RSI is putting in a bullish divergence. This is the first sign of a market turning. If we see the dollar trend to the 3D 21 period moving average, we could see a 15% drop before we have any support. Now this doesn’t mean that BTC will go down 15%, the dollar could go up 2% and then BTC could go down 7.5% or vice versa. This is an intermarket analysis chart that we like to use as a check. The argument of if the markets are correlated is a silly one. At some points, the market will be tied to the VIX. Other times its the SPY correlation that we have to watch. Last but certainly not least, we have to watch the dollar. Even if they aren’t correlated, they are related at least!
So let’s see how this plays out. Overbought indicators in the crypto market as a whole and a dollar that is looking to outperform BTC. We will be watching to see what happens!
Brandon Anderson
www.derzzycharts.com