Bitcoin Cleared For Liftoff…?
So from what Spilotro is saying here, the Dollar Currency Index dropping from a key level could very well cause Bitcoin to takeoff just like we’ve all been waiting for…
Dollar Index Loses Key Level: Bitcoin Cleared For Liftoff?
“The DXY Dollar Currency Index is a weighted basket of top currencies from around the globe. None of which are Bitcoin. However, there is no better measure of the strength of the dollar than the DXY.
In technical analysis, higher timeframes produce the most dominant signals. Not all timeframes are treated equally, so experimentation can provide early clues about what’s to come. For example, the 4-week timeframe trims just 2-3 days off each one-month interval. This timeframe yields slightly earlier signals than the monthly.
While the monthly DXY is resting upon the middle Bollinger Band, on the 4-week timeframe the level has already been lost. The last candle close finished below the 20-period SMA, which makes up the basis of the upper and lower bands.
How does this have anything to do with Bitcoin, you ask? When USD was strong in 2022, it crushed BTC on the trading pair. If the dollar is poised to plummet, then the BTC side of the trading pair should soar again. In fact, each time the DXY lost this level, BTCUSD had one of its largest rallies of the past decade.”