Crypto strategist issues Bitcoin (BTC) warning as US dollar soars to 20-year high
A cryptoanalyst who continues to build a following with his timely Bitcoin talks is issuing a warning for BTC holders as the US dollar breaks out to a level not seen in two decades.
Crypto strategist Kevin Svenson says his 113,500 Twitter followers Bitcoin recently broke below its diagonal support that has kept BTC afloat since the June 2022 bottom of around $17,600.
“At the moment it just looks like [bearish] continuation unless we were to jump back above the trendline.”
At the time of writing, BTC is changing hands at $20,010, flat on the day and still below analyst diagonal support.
Svenson’s bearish view on Bitcoin comes as he believes the US Dollar Index (DXY), which tracks the value of the US dollar against a basket of fiat currencies, remains in a strong uptrend.
In a new strategy session, the crypto analyst says that DXY appears to have more gas left in the tank even after rising over 15% this year.
“Looking at the US Dollar Index from the four-hour chart, we’re holding those levels. We’re still getting higher lows and higher highs, and the momentum doesn’t look like it’s slowing down anytime soon. So if the US Dollar Index breaks out every day [timeframe] once again, seeing another higher high on this run that could be bad for Bitcoin. It can cause Bitcoin daily [timeframe] to perhaps even see lower lows ($18,600), at least from our last low.”
Crypto traders are keeping a close eye on the US dollar index. A rising DXY suggests investors are selling risky assets like Bitcoin and crypto and seeking the safe haven of the US dollar.
On Monday, the DXY rose to 110.27 points, a level last touched by the index in June 2002.
I
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered straight to your inbox
Check price action
Follow us on TwitterFacebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured image: Shutterstock/FOTOGRIN
