DXY RSI compared to BTC
DXY/RSI bottoms mark the BTC top. Conversely, BTC bear markets generally occur when the DXY ranges before it drops and the bull market starts.
The multi diagonal and horizontal trending resistance should offer a solid rejection given how hot the dollar came into this zone. The inevitable fed pivot may just provide that drop-off we need...
Step-by-step
1. Established support level after heavy drop.
2. Price breaks through
3. Price retraces to the scene of the crime
4. Low Volume on retrace confirms weakness
5. Retest rejected to confirm S/R flip
6. Second retest can be a med risk entry
7. Double top with bearish div confirms entry
8. TP at 0.618 and POC
Points:
Signal: Break down straight through major support level with large volume
Confirmation: Retrace to Major support w/decreasing volume
Entry: At support/resistance
Exist: previous low
RSI Descending Line of Resistance. Typical rejection on low volume. Followed by multi week drawdowns.
Or could BTC breakout toward 38k and push the RSI through?
