DXY has enjoyed a lot of strength in recent weeks, strangely baffling seeing as since 2020 the supply of USD has increased by 30%+. There is now more Dollars in existence than have ever been, yet according to recent strength it would seem people still trust the Dollar. It seems like a recipe for disaster if you ask me. The dollar is weak, it has been since Nixon unpegged it from the Gold Standard, thus sealing its fate as a fiat currency. History shows us how it ends for “world reserve currencies”, the cycle is around every 100 years. Guess how long the Dollar has been in power for ;)
Price attempted to breakout to the upside last week, completing the impulsive move from 94.56 to 96. However the .5 fib held and sellers stepped in causing a considerably big wick. Indicating buyers are struggling to break through the fibonacci levels that are acting as resistance. we closed with a huge wick on the weekly. I’m now waiting for a weekly close below the aforementioned levels to indicate a continuation to the downside. This adds further confluence to my idea posted earlier in regards to Bitcoin . It would seem Bitcoin has found its bottom and we should now be expecting Bitcoin to start moving towards my 233K targets.
Once DXY starts collapsing, the downside targets at the D ext. are 86 & 82 respectively.
It is my belief that we will be seeing the Dollar collapse as Bitcoin goes on its parabolic blow off top phase of the market cycle (something we haven’t seen yet).
Regardless of how far Bitcoin goes, it needs a DXY collapse to do so. Similar to 2017. So far Bitcoin is inversely correlated with DXY . Observed today we can see weakness in the DXY has led to Bitcoins price rising and therefore the rest of the crypto market across the board. This is just the beginning. Don’t be disillusioned, when Bitcoin does pullback, which it will. This will be a great buying opportunity. Be patient & ENJOY the show.
Remember to take profits as you go and scale out. We don’t need to pick tops. No one ever went broke taking profits.
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