DXY is once again sitting in the same bottoming structure on a 10-year trend line while BTC pushes into a potential local high.
Historically, every time BTC has topped, DXY has rallied shortly after. Although BTC topped around 7 months ago, DXY has yet to see the upside expansion it has shown in previous cycles.
If this correlation continues to play out, BTC should begin transitioning lower while DXY starts the next leg higher.
*US APRIL CONSUMER PRICES RISE 0.6% M/M; EST. +0.6% *US APRIL CONSUMER PRICES RISE 3.8% Y/Y; EST. +3.7% *US APRIL CORE CPI RISES 0.4% M/M; EST. +0.3% *US APRIL CORE CPI RISES 2.8% Y/Y; EST. +2.7%
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