Good afternoon my fellow Cryptocurrency trader,
Another positive development is now present on the DXY chart. Positive because of the negative correlation between the DXY and the Cryptocurrency market.
This is by far the strongest bullish signal for Bitcoin of all, better than looking at Bitcoin Dominance, Tether Dominance, ETHBTC, etc. When the DXY goes down, Bitcoin is certain to grow, no ambiguity. When Bitcoin grows, the altcoins grow.
I’ve been looking at the DXY bearish for a while but several continuations appeared, the action continued to move toward resistance. While the DXY challenged resistance, Bitcoin performed a retrace. Things are getting better though.
Here we have a double-top and quadruple top. This is a very strong signal favoring a drop on the DXY. Money flows to Crypto when this happens.
Notice today’s candle, truly full red, a huge candle. At the same level that has been producing rejection after rejection. After a close below this level today, there is no going back—resistance has been confirmed and this will be the start of a major drop, which would be the analog of a major advance on Bitcoin, Ethereum and the altcoins. This is a great signal and confirms-supports our Cryptocurrency market bullish bias.
The DXY is headed toward 95 and the lowest reading since late January.
Another indicator working as resistance is EMA377. It has been challenged twice and twice there is a failure for this index to move forward. Everything is about to speed up.
Notice how a drop starts from on-high, at resistance. In reverse, a rise starts from a major low, at support. Crypto is going up.
Namaste.