Crypto Is On The Brink Of Explosion As 9-Year DXY Formation Returns
October 04 2023 - 8:00AM
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An inverse correlation between the crypto market and the DXY has
often helped to signal when a bull rally is on the horizon. One of
the most notable instances of this happened 9 years ago, and since
then, the formation has not returned, until now, signaling a
massive price surge in October. DXY Readies To Clock 12th
Consecutive Candles In an X (formerly Twitter) post, crypto analyst
TheCryptoMann has revealed an important formation in the DXY. The
DXY is the United States Dollar Index which measures the value of
the dollar to other major (6) currencies around the world. Related
Reading: 3 Reasons Why Shiba Inu Price Might See A Massive Surge
Over 400% Now, since Bitcoin is often touted as an alternate and
better currency to the likes of the US dollar, there is often some
competition between them leading to an inverse correlation over the
years. This is why this DXY formation is important. As
TheCryptoMann points out, the DXY is headed toward a 12th
consecutive green candle which is bullish for the crypto market.
This is because the last time that this happened was in 2014, and
the results were very bullish for crypto. The analyst explains that
when this happened in 2014, the DXY had fallen 8%. Crypto had then
gone in the opposite direction, mounting a rather impressive rally.
A look at the chart shows that in the year 2014, the crypto market
went from $5.4 billion to over $8.2 billion, an over 50% surge in
price. Total market cap jumps from $5.4 billion to $8.2 billion
2014 | Source: Crypto Total Market Cap on Tradingview.com A Bullish
Time For Crypto TheCryptoMann likens the current movement to what
took place in 2014 and actually expects this movement to repeat
once more. As he explains, the incoming correction in the DXY will
see the crypto market explode as it did 9 years ago. He also points
out that “the DXY is also being rejected from the 0.5 FIB
Retracement level from its most recent local highs and lows!” He
further added: There is a clear inverse correlation between the DXY
and the cryptocurrency market. So over the next month, we’re about
to see some major price movements, so eyes on the market. Related
Reading: Twitter IPO: Dogecoin Takes Center Stage In Elon Musk’s X
IPO Rumors Another analyst Cryptoinsighuk also seems to share the
views of TheCryptoMann as he also believes there is correction
coming for the DXY. “Also, whilst sentiment is this bad we are
having the SBF trial. This is negative towards Crypto, tells me the
bottom could be very close in this move,” the analyst added. Great
thoughts. I also have some further technicals to add to this later.
Just waiting for their confirmation. I think the $DXY will soon
turnover. Also, whilst sentiment is this bad we are having the SBF
trial. This is negative towards Crypto, tells me the bottom could
be… https://t.co/QK13cnvOka — Cryptoinsightuk (@Cryptoinsightuk)
October 4, 2023 If TheCryptoMann’s forecast is correct, then the
crypto market could be getting ready for a massive move to the
upside. A similar rally would see the total market cap go from
$1.065 trillion currently to over $1.5 trillion, signaling a
bullish end to the year 2023. Featured image from The Motley Fool,
chart from Tradingview.com
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