Today, BTCUSD successfully broke through the 21k resistance and is on its way to a new high. One of the reasons behind this mini uptrend is probably the correlation between The US Dollar Currency Index and Bitcoin Price.
As we can see, DXY is slowly falling from its 114 peaks since FED eased their policies. They are still raising the interest rate but at a slower pace. The interest rate is expected to be over 5% before the FED pivot. On the chart, there is a large demand zone for DXY at 95-100 points. We might see a good bounce of DXY when it meet this demand zone.
What is that mean for BTC and other cryptocurrencies? A correction, a big one. The CME gap of 19k5 is waiting to be filled. Still, BTC might crawl back to the 25k resistance to test its strength. From there, it might trigger a big correction for the whole crypto market.
For crypto optimism, this is the chance to scalp profit before the true winter. For crypto pessimistic, this is still a bear market and not worth buying. Which side are you on?