Popular crypto analysts warn that the strength of the US dollar index (DXY) will bring bad news to both digital assets and the stock market.
Cryptographic trader Justin Bennett To tell His 101,900 Twitter followers show that the current surge in DXY has caused the Bitcoin (BTC), Ethereum (ETH), and stock markets to fall for at least a year.
“Many people don’t like this, but …
DXY closed above significant multi-year levels in June and today hits its 20-year high from the dollar index.
All signs show 120, suggesting that movements from equities and cryptocurrencies have been restrained for another 12-20 months. “
trader To tell The harsh warning has a silver lining for crypto bulls.
“This is the silver lining …
This is a monthly chart, 12-20 months is a long time. Therefore, it is very likely that some relief rallies from cryptocurrencies will be seen during this period.
Just because the DXY is on the rise does not mean that risk assets are unstable or unrecoverable. “
Bennett especially appreciates Bitcoin warning His traders are reluctant to trust price behavior on sudden weekends and holidays as BTC has canceled the move over the past few days.
“That’s why we don’t trust weekend moves or US vacation moves when the cash market is closed.
BTC has fallen slightly below $ 19,800 in the last four hours of closing prices. “
Looking at the stock market, which is often traded in parallel with cryptocurrencies, Bennett To tell Recent pricing behavior in the S & P 500 Index implies additional pain that comes after extensive counterfeiting.
“The second fake out of the S & P 500 since late June, which was above that $ 3,820 / 40 territory.
$ 3,700 and $ 3,640 are the next major support. However, I think S & P is heading towards a pre-COVID high of 3,400. “
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