Technical Analysis of DXY: Is Bitcoin Headed Towards $35k-$40k
Technical Analysis of DXY: Is Bitcoin Headed Towards $35,000-$40,000 Zone?
The US Dollar Index (DXY) is a measure of the value of the United States dollar relative to a basket of foreign currencies. In recent times, the DXY has been experiencing a bearish trend. This article will explore the technical analysis of the DXY chart and its potential impact on the price of Bitcoin.
Current Status of DXY:
The DXY is currently trading at $102, having broken support and retested it in the High Time Frame (HTF). The chart is forming a Head and Shoulder pattern, indicating a bearish trend below the Neck Line support of $101.30. If this support breaks, the price of Bitcoin could drop to the $36,000-$40,000 zone.
Key Technical Indicators:
The Neck Line support at $101.30 is a critical level for the DXY. If it breaks, the next major support level is at $90, which is around 12% from the current level. Moreover, the DXY chart's resistance level is at $105.35. If it breaks, the bearish sentiment in this chart will be invalidated.
Takeaways:
The DXY is currently experiencing a bearish trend, with a Head and Shoulder pattern forming in the chart.
The Neck Line support at $101.30 is a crucial level, and if it breaks, the price of Bitcoin could drop to the $36,000-$40,000 zone.
The resistance level of the DXY chart is at $105.35, and if it breaks, the bearish sentiment will be invalidated.
Conclusion:
In conclusion, the technical analysis of the DXY chart suggests a bearish trend in the near future. If the Neck Line support at $101.30 breaks, the price of Bitcoin could drop to the $36,000-$40,000 zone. However, if the resistance level of $105.35 breaks, the bearish sentiment will be invalidated. Investors must do their own research and analysis before investing in any coins.
The US Dollar Index (DXY) is a measure of the value of the United States dollar relative to a basket of foreign currencies. In recent times, the DXY has been experiencing a bearish trend. This article will explore the technical analysis of the DXY chart and its potential impact on the price of Bitcoin.
Current Status of DXY:
The DXY is currently trading at $102, having broken support and retested it in the High Time Frame (HTF). The chart is forming a Head and Shoulder pattern, indicating a bearish trend below the Neck Line support of $101.30. If this support breaks, the price of Bitcoin could drop to the $36,000-$40,000 zone.
Key Technical Indicators:
The Neck Line support at $101.30 is a critical level for the DXY. If it breaks, the next major support level is at $90, which is around 12% from the current level. Moreover, the DXY chart's resistance level is at $105.35. If it breaks, the bearish sentiment in this chart will be invalidated.
Takeaways:
The DXY is currently experiencing a bearish trend, with a Head and Shoulder pattern forming in the chart.
The Neck Line support at $101.30 is a crucial level, and if it breaks, the price of Bitcoin could drop to the $36,000-$40,000 zone.
The resistance level of the DXY chart is at $105.35, and if it breaks, the bearish sentiment will be invalidated.
Conclusion:
In conclusion, the technical analysis of the DXY chart suggests a bearish trend in the near future. If the Neck Line support at $101.30 breaks, the price of Bitcoin could drop to the $36,000-$40,000 zone. However, if the resistance level of $105.35 breaks, the bearish sentiment will be invalidated. Investors must do their own research and analysis before investing in any coins.
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