Bitcoin Poised for Rally as Dollar Index Weakens – Analyst
Bitcoin failed to break above $70,000, and the Thinking Crypto podcast analyst connects this to the dollar currency index (DXY). The analyst identified a DXY surge over the past two months, explaining how the inverse correlation between the two influenced Bitcoin’s price.
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Despite the DXY’s significant rise since September, Bitcoin demonstrated resilience by avoiding a major decline. However, it stalled, unable to surge as many in the crypto community anticipated. The current outlook indicates BTC could soon rally as the DXY approaches overbought conditions.
Analyst Predicts DXY Breakdown and Bitcoin Rally
The Thinking Crypto analyst expects the DXY to decline because of its overbought status. He predicts a significant DXY breakdown since its price remained elevated. The analyst says this will coincide with the U.S. election and other macroeconomic factors, triggering a parabolic crypto market rally starting in November.
The analyst identified a bullish signal on Bitcoin’s lower time frame charts, where the cryptocurrency formed higher highs and higher lows, a classic uptrend pattern. He anticipates this pattern will continue until Bitcoin surpasses $70,000 and enters price discovery.
Read also: Bitcoin Bull Run Imminent: Analyst Predicts Q4 Surge After Halving
BTC traded for $67,770 at the time of writing, following a rebound from last week’s $65,000 low. The recent surge reaffirms the existing bullish sentiment surrounding the flagship crypto. It also reflects the bulls’ strength, as Bitcoin has repeatedly recovered from intermittent pullbacks to maintain its bullish alignment.
The Thinking Crypto analyst says a bull run is inevitable but will materialize later. He expressed confidence, stating the current market shows the difference between smart money and retail investors. Retail investors sell out of panic, while smart money takes advantage of pullbacks to buy more assets.
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