The Rekindling of the DXY-Crypto Connection
In the dynamic world of cryptocurrencies, a unique correlation has often emerged between the crypto market and the DXY index. This relationship has proven instrumental in forecasting impending bull rallies. Notably, this correlation last made headlines nine years ago, and now, it’s making a spectacular return, hinting at a substantial price surge set to unfold this October.
Analyzing the 12th Consecutive Candles of DXY
In a recent tweet, the crypto analyst known as TheCryptoMann shed light on a significant development within the DXY index. The DXY, or the United States Dollar Index, serves as a yardstick for measuring the dollar’s value against six major global currencies.
Given Bitcoin’s reputation as a viable alternative to the US dollar, a sense of rivalry has persisted between them, resulting in a remarkable inverse correlation over the years. This is precisely why the resurgence of the DXY formation carries such significance.
As noted by TheCryptoMann, the DXY is on course to record its 12th consecutive green candle, a bullish indicator for the crypto market. The last time this occurred was in 2014, and the outcome was overwhelmingly bullish for cryptocurrencies.
In 2014, when the DXY plummeted by 8%, the crypto market embarked on an impressive rally in the opposite direction. A glance at the charts reveals that during that year, the crypto market’s capitalization surged from $5.4 billion to over $8.2 billion, reflecting a staggering 50% increase in value.
A Bullish Outlook for Crypto
TheCryptoMann draws parallels between the current market movement and the events of 2014, expressing confidence in a reiteration of history. He anticipates that the imminent correction in the DXY will ignite a crypto market explosion akin to what transpired nine years ago.
He further highlights, “The DXY is also encountering resistance at the 0.5 FIB Retracement level from its recent local highs and lows!”
Expanding on his analysis, he adds:
“There exists an unmistakable inverse relationship between the DXY and the cryptocurrency market. So, in the upcoming month, brace yourselves for significant price fluctuations; keep a keen eye on the market.”
Another analyst, Cryptoinsighuk, appears to share TheCryptoMann’s perspective regarding the impending DXY correction. “Furthermore, amidst the prevailing negative sentiment due to the SBF trial, which casts a shadow on Crypto, it seems we are approaching a potential market bottom,” the analyst remarked.
Forward-Looking Insights
With the crypto world eagerly awaiting confirmation of these technical indicators, it’s reasonable to expect a potential turnaround for $DXY. If TheCryptoMann’s forecast rings true, the crypto market could be gearing up for a monumental upswing. A reprise of such a rally would catapult the total market capitalization from its current $1.065 trillion to over $1.5 trillion, setting the stage for a bullish conclusion to the year 2023.
Featured image courtesy of The Motley Fool, chart source
- Enjoy Violet & Daisy: Stream on Amazon Prime Video and Peacock
- Cha Eun-Woo Steps into Kim Nam-Joo’s Drama: An Intriguing Twist Unfolds
- Deadpool 3 & Wolverine Super Bowl Trailer Easter Eggs
- Unveiling the Secrets of the Nagi Nagi no Mi in One Piece
- Unveiling the Untitled: Behind-the-Scenes of the Canceled Game of Thrones Spin-off with Naomi Watts
- Next Jurassic World Film: Director and Release Date Revealed