An inverse correlation between the crypto market and the DXY has often helped to signal when a bull rally is on the horizon. One of the most notable instances of this happened 9 years ago, and since then, the formation has not returned, until now, signaling a massive price surge in October.
DXY Readies To Clock 12th Consecutive Candles
In an X (formerly Twitter) , crypto analyst TheCryptoMann has revealed an important . The DXY is the United States Dollar Index which measures the value of the dollar to other major (6) currencies around the world. Now, since Bitcoin is often touted as an alternate and better currency to the likes of the US dollar, there is often some competition between them leading to an inverse correlation over the years. This is why this DXY formation is important.Total market cap jumps from $5.4 billion to $8.2 billion 2014 | Source:
A Bullish Time For Crypto
TheCryptoMann likens the current movement to what took place in 2014 and actually expects this movement to repeat once more. As he explains, the incoming correction in the DXY will see the crypto market explode as it did 9 years ago. He also points out that “the DXY is also being rejected from the 0.5 FIB Retracement level from its most recent local highs and lows!” He further added:There is a clear inverse correlation between the DXY and the cryptocurrency market. So over the next month, we’re about to see some major price movements, so eyes on the market.Another analyst Cryptoinsighuk also seems to share the views of TheCryptoMann as he also there is correction coming for the . “Also, whilst sentiment is this bad we are having the SBF trial. This is negative towards Crypto, tells me the bottom could be very close in this move,” the analyst added.
Great thoughts. I also have some further technicals to add to this later. Just waiting for their confirmation. I think the will soon turnover. Also, whilst sentiment is this bad we are having the SBF trial. This is negative towards Crypto, tells me the bottom could be… — Cryptoinsightuk (@Cryptoinsightuk)If TheCryptoMann’s forecast is correct, then the crypto could be getting ready for a massive move to the upside. A similar rally would see the go from $1.065 trillion currently to over $1.5 trillion, signaling a bullish end to the year 2023.