A crypto analyst who continues to construct a following along with his well timed Bitcoin calls is issuing an alert for BTC holders as the US greenback erupts to a stage not seen in 20 years.
Crypto strategist Kevin Svenson tells his 113,500 Twitter followers that Bitcoin just lately broke beneath its diagonal assist that has stored BTC afloat for the reason that June 2022 lows of round $17,600.
“As of right now, it just looks like [bearish] continuation unless we were to bounce back above the trendline.”
At time of writing, BTC is altering fingers for $20,010, flat on the day and nonetheless beneath the analyst’s diagonal assist.
Svenson’s bearish view on Bitcoin comes as he believes the US greenback index (DXY), which tracks the worth of the US greenback relative to a basket of fiat currencies, remains to be in a robust uptrend.
In a brand new technique session, the crypto analyst says the DXY seems to have extra fuel left in its tank even after rising over 15% this yr.
“Looking at the US dollar index from the four-hour chart, yeah we are sustaining these levels. We’re getting continued higher lows and higher highs, and it doesn’t seem the momentum is slowing down anytime soon. So if the US dollar index does break out on the daily [timeframe] once again, and sees another higher high on this run that could be bad for Bitcoin. That could cause Bitcoin on the daily [timeframe] to maybe even see lower lows ($18,600), at least from our recent low.”
Crypto merchants hold a detailed watch on the US greenback index. A surging DXY means that buyers are promoting risk-on belongings like Bitcoin and crypto and looking for the safe-haven standing of the US greenback.
On Monday, the DXY rallied to 110.27 factors, a stage final touched by the index in June 2002.
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