Guidance and corrections from the U.S. Dollar Index for $BTC and $ETH :
Around September 10, the U.S. Dollar Index completed a daily-chart bottoming pattern. Taking its first interest rate hike in more than three years as a catalyst, it began a sharp rally.
Then something strange happened: from September 18 to 22, Bitcoin just happened to surge in tandem right at this pivotal moment.
Even oil and gold, despite the backdrop of war, had started to fall. Why, then, did little old Bitcoin surge?
Sure enough, by late September and early October, Bitcoin had formed a technical top on the two-day chart and finally began to fall. As the saying goes, what goes around comes around. It wasn't that Bitcoin wouldn't fall—its time just hadn't come yet.
The U.S. Dollar Index's strength is unlikely to fade anytime soon, so we can expect another major catch-up decline in Bitcoin.
There may be more nuanced interpretations from a technical perspective, but if we can identify the trend in the context or reference asset behind an investment, we may be able to see further ahead on higher time frames—and hopefully earn substantial returns.
Around September 10, the U.S. Dollar Index completed a daily-chart bottoming pattern. Taking its first interest rate hike in more than three years as a catalyst, it began a sharp rally.
Then something strange happened: from September 18 to 22, Bitcoin just happened to surge in tandem right at this pivotal moment.
Even oil and gold, despite the backdrop of war, had started to fall. Why, then, did little old Bitcoin surge?
Sure enough, by late September and early October, Bitcoin had formed a technical top on the two-day chart and finally began to fall. As the saying goes, what goes around comes around. It wasn't that Bitcoin wouldn't fall—its time just hadn't come yet.
The U.S. Dollar Index's strength is unlikely to fade anytime soon, so we can expect another major catch-up decline in Bitcoin.
There may be more nuanced interpretations from a technical perspective, but if we can identify the trend in the context or reference asset behind an investment, we may be able to see further ahead on higher time frames—and hopefully earn substantial returns.
