Some major changes are quietly taking place in the U.S. dollar…… While I’m tracking cryptocurrencies, I’m also keeping a close eye on the U.S. Dollar Index #DXY
First of all, what is the U.S. Dollar Index? Let me explain it simply: it’s an index that reflects the strength of the U.S. dollar against major currencies such as the euro, the Japanese yen, and the British pound. Therefore, if the U.S. Dollar Index rises, it means the dollar is strengthening; if it falls, it means the dollar is temporarily pulling back. So what does this
have to do with cryptocurrencies #kripto ?
In general, a strong U.S. dollar is not favorable for risk assets. When the U.S. Dollar Index weakens, the price movements of Bitcoin and other cryptocurrencies become more free. Of course, this is not an absolute rule—I mainly use it to gauge overall market sentiment. Based on my chart…… The U.S. Dollar Index is currently near 100.85 and has just touched a key area. The first thing I’m watching is 101.15. If it breaks above that area, the next target would be 105. Especially if the U.S. Dollar Index breaks above 105, I’ll discuss the possibility of a strengthening dollar more seriously. Next, the 108 → 111 → 113 area is worth paying attention to. On the downside, 95.41 is an important support level for me. If the price drops again and falls below that level, the dollar’s weakness will be more evident. In short: U.S. Dollar Index rising → the dollar strengthens, and the crypto market should be cautious U.S. Dollar Index falling → the dollar weakens, and risk assets may ease a bit. Right now, my focus is on the two price levels: 101 and 105. Because sometimes, when we’re watching the $BTC chart, the answer we’ve been struggling to find may actually be hiding in the U.S. dollar chart. #BTC走势分析
First of all, what is the U.S. Dollar Index? Let me explain it simply: it’s an index that reflects the strength of the U.S. dollar against major currencies such as the euro, the Japanese yen, and the British pound. Therefore, if the U.S. Dollar Index rises, it means the dollar is strengthening; if it falls, it means the dollar is temporarily pulling back. So what does this
have to do with cryptocurrencies #kripto ?
In general, a strong U.S. dollar is not favorable for risk assets. When the U.S. Dollar Index weakens, the price movements of Bitcoin and other cryptocurrencies become more free. Of course, this is not an absolute rule—I mainly use it to gauge overall market sentiment. Based on my chart…… The U.S. Dollar Index is currently near 100.85 and has just touched a key area. The first thing I’m watching is 101.15. If it breaks above that area, the next target would be 105. Especially if the U.S. Dollar Index breaks above 105, I’ll discuss the possibility of a strengthening dollar more seriously. Next, the 108 → 111 → 113 area is worth paying attention to. On the downside, 95.41 is an important support level for me. If the price drops again and falls below that level, the dollar’s weakness will be more evident. In short: U.S. Dollar Index rising → the dollar strengthens, and the crypto market should be cautious U.S. Dollar Index falling → the dollar weakens, and risk assets may ease a bit. Right now, my focus is on the two price levels: 101 and 105. Because sometimes, when we’re watching the $BTC chart, the answer we’ve been struggling to find may actually be hiding in the U.S. dollar chart. #BTC走势分析
