Both Bitcoin and altcoins have enjoyed a near-perfect environment for them to thrive, all based on the dollar’s weakness and decline. It has allowed these digitally scarce assets to rise significantly in 2020.
However, a rare signal suggesting that the dollar will soon reverse could put an end to the recent crypto bull rally. Here’s why.
The Dollar Isn’t Dying, And A Day Of Reckoning May Be Coming For Crypto
Historic DXY and Bitcoin Relationship Warns Of Potential V-Shaped Drop
Since the trend has been down, this means the DXY could soon turn up. The DXY shows an inverse correlation with Bitcoin, meaning that when the dollar dives, the crypto market soars.
DXY Dollar Currency Index Versus BTCUSD Chart Comparison | Source: TradingView
This was just a week or so following Bitcoin’s early bear market V-shaped drop. The DXY reversed so sharply, the 9 candle closed as a 1, indicating a new uptrend has begun and the count starts over.
BTCUSD Chart With DXY TD 9 Buy Signals | Source: TradingView