Macro Negative Correlation with BitcoinThe US Dollar Index TVC:DXY is negatively correlated with the macro Bitcoin BNC:BLX chart.
Indicators like the Correlation Coefficient indicator will display swings from negative to positive correlation between TVC:DXY and $INDEX:BTCUSD. This can lead to a belief that they are not in fact negatively correlated.
But, when you zoom out to a macro view of Bitcoin and compare, the dollar index's peaks correspond with Bitcoin's lows, while Bitcoin's peaks correspond with DXY's lows.
At times, these corresponding peaks and valleys have occurred near the same dates and times, while at other times DXY has acted as a leading indicator for future movement for Bitcoin.
Where will we go next?
if DXY returns to its previous high and breaks it, I suspect Bitcoin will move lower
on the other hand, should DXY move further down or get stuck within a range, it's likely that Bitcoin will move higher
What do you think?