Cryptoanalyst says rising US dollar will hit Bitcoin (BTC), Ethereum (ETH) and the stock market hard
A popular cryptanalyst warns that the strength of the US Dollar Index (DXY) is bad news for both digital assets and the stock market.
Crypto Trader Justin Bennett says his 101,900 Twitter followers that DXY’s current increase points to Bitcoin (BTC), Ethereum (ETH) and the stock market staying down for at least a year.
“Many people will not like this, but …
DXY closed above a significant multi-year level in June, and today we see new 20-year highs from the dollar index.
All signs point to 120, indicating another 12-20 months of suppressed movement from stocks and crypto. “
Traders sier that the strong warning comes with a silver lining for cryptocurrencies.
“Here is the silver lining …
This is the monthly chart and 12-20 months is a long time. So it is very likely that we will see more relief rallies from crypto during this time.
Just because DXY trends are higher does not mean that risk assets cannot be stabilized or even rallyed. “
Considering Bitcoin specifically, Bennett warns his traders to not rely on sudden weekend or holiday price actions, as BTC has now canceled its move in recent days.
“This is why you do not trust weekend movements and / or those during US holidays when the cash markets are closed.
BTC right back below $ 19,800 in the last 4 hours closing. ยป
Looking at the stock market that often trades in line with crypto, Bennet sier The recent price action of the S&P 500 index suggests that further pain will come after a major fakeout.
“Second fakeout from the S&P 500 since the end of June. This was above the $ 3,820 / 40 range.
$ 3700 and $ 3640 are the next key supports. But I think S&P is heading for the 3400 pre-COVID height. “
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Disclaimer: Opinions expressed by 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 may 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 adviser. Please note that The Daily Hodl participates in affiliate marketing.
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