quantmaven

Bitcoin: US Dollar must go down for parabolic rally to ensue

TVC:DXY   U.S. Dollar Currency Index
What TechDev and other crypto influencers fail to mention is that the three previous "blow-off" tops on Bitcoin were backed by a lower US dollar . The US greenback is rising in anticipation of higher interest rates in what could be a possible primary wave 5 as illustrated. It did the same in 2014 with a primary wave 3 before the Fed began its hawkish monetary policy of hiking the Fed funds rate. If DXY rallies from 97 to 115, there is no way Bitcoin is going up during that move, in fact it might fall from 56K to 30-40K easy. Althought DXY seems like it has started taking off, there is a small chance it might fall if COVID-19 becomes an issue again which might require for the monetary policy to remain accomodative.