Analyst predicts DXY collapse and Bitcoin rally in coming months by CoinEdition

• EGRAG CRYPTO says that the US Dollar Index (DXY) is about to enter a significant downtrend.
• The analyst projected that DXY would fall towards $93 after facing a rejection to the upside.
• DXY maintains a historical negative correlation against Bitcoin.

The US Dollar Index (DXY) is about to enter a significant downtrend, according to cryptocurrency analyst EGRAG CRYPTO. In an analysis published on Twitter, EGRAG predicted that DXY would fall towards $93 after being rejected to the upside.

A confluence of events signaling a valid rejection around the $105 resistance level informed EGRAG’s DXY projection. An intersection of horizontal support and an upward trendline, supported by the 20 Monthly Moving Average (MMA), formed an impregnable region that halted DXY’s upward movement.

According to EGRAG, historical data provides evidence of a drop to 50 MMA to follow such a monthly close below 20 MMA.

Traditionally, DXY is used to measure the dollar’s exchange rate against major fiat currencies, including the British pound and the euro. It also maintains a historical negative correlation against Bitcoin, except during crypto-specific factors that affected the markets via unexpected volatility.

Based on EGRAG’s forecast, a falling DXY would mean Bitcoin’s price rising to higher levels. In an earlier tweet, EGRAG indicated that DXY has been in a downtrend since June 2022, with the potential to continue falling until it reaches the $93 target. Based on the negative correlation with crypto, EGRAG predicts that the fall of DXY will ignite the markets, pushing crypto prices higher in the coming months.

From the analyst’s forecast, the rise in crypto prices may last until the 3rd quarter of 2023, when the markets may turn “ugly” with the expectation of a “Black Swan” in the last quarter of 2023.

The crypto market has been bullish since the beginning of 2023, respecting the negative correlation between crypto and DXY. Several analysts perceive Bitcoin’s retreat from the annual high of $31,035 as a correction that prepares the market for the next rally.

EGRAG’s analysis is consistent with prevailing sentiment, suggesting that Bitcoin and the crypto market will trend higher in the coming months ahead of a period of uncertainty that will usher in the next Bitcoin halving.

The post Analyst Predicts DXY Collapse and Bitcoin Rally in Coming Months appeared first on Coin Edition.

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See the original at CoinEdition