Crypto analyst and trader Justin Bennett said that weakness in the US dollar could spark a new parabolic rally for Bitcoin (BTC). The popular analyst tells his 85,000 followers that he is looking at the US dollar index (DXY), which compares the USD to a basket of other major fiat currencies. A weaker dollar generally indicates that investors prefer other assets over the world’s reserve currency. On the other hand, what might happen to Ethereum if Ethereum fails to hold support at $4,000 is among the topics of discussion. Detail cryptocoin.com‘in.
Bitcoin-dollar relationship
Bennett says DXY is about to approach the bottom of an ascending channel. If it bottoms out and a major downtrend starts, the analyst says the collapse could be the catalyst to send the crypto into a parabolic surge. Analyst: “What is that? Did BTC rise while DXY was weakening? 93.50 critical. “I think a close below this for the USD index starts the parabolic phase of the crypto bull market.”
Looking at Bitcoin in the short term, Bennett predicts that BTC will consolidate a bit more before finding a bottom around $57,000. From there, the analyst suggests that Bitcoin broke out in early November and will surge above $75,000 by the middle of the month. Analyst: “BTC consolidation continues. If the market can diverge from the September retracement (yellow) and break there, it would bounce back to $64,000. This would be the next big test for the bulls. Let’s see,” he says.
When it comes to Ethereum, the crypto analyst says that the second-largest coin by market cap is in the midst of a breakout that could see it gain up to 362% in the coming months from its current price of $4,324. Analsit: “ETH is booming again. The weekly chart looks set for $10,000 – $20,000 in the next few months.”
Where is Ethereum headed?
A closely followed crypto trader and analyst is investigating what could happen to Ethereum if ETH fails to hold support at the $4,000 level. In a recent TechnicalRoundup strategy session, the alias analyst known as Cred took a look at Ethereum’s recent break above the $4,000 level to see if it was convincing enough to take ETH into price discovery. Considering the possibility of a failed ETH breakout, Cred identifies potential areas where the leading smart contract platform could create a higher low setup. Analyst: “If this breakout continues, great, because at that point weekly resistance is at an all-time high… That’s good. If it doesn’t, I think there’s really clear and really good support… in the low to mid $3,000 range, around $3,000… In terms of candidates for higher lows, that should be it, because there’s nothing else.”
The crypto analyst gives his overview on Ethereum’s move into the coming weeks and months. According to Cred, how ETH reacts to the $4,000 and $3,000 levels could determine whether the leading smart contract platform can go higher. Cred says:
Long story short for Ethereum: Above $4,000…up… Below $4,000, it goes down in the short term, but still macro rises as long as it holds $3,000. I think below $3,000 then a failed range break in a multi-month range followed by a support breach threatening the weekly market structure completely changes the picture. This is actually the worst scenario you can come up with.
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