Closely followed crypto trader Justin Bennett underlined that the US dollar (DXY) is showing signs of weakness. According to the trader, this detail is cryptocurrency It represents a “big moment” for the market and anything can happen at any moment.
Sharing his views on his Twitter account with more than 117,000 followers, Justin Bennett believes that the US dollar index (DXY) is testing the May 2021 trendline and if it breaks, it could trigger a rise for the cryptocurrency market.
Koinfinans.com As we have reported, the weakening of the US dollar index is closely followed by crypto investors. The biggest reason for this is that it is one of the most critical indicators that investors holding their money in the US dollar are starting to move into risky assets such as stocks and crypto. DXY has been trading on an upside channel since May 2021 but has started to lose strength in recent months.
While preparing the news, the US Dollar index is at 102.31, falling from the previous close of 103.19.
Believing that Bitcoin will remain strong at the beginning of 2023, Bennett believes it will show an upside ladder formation. This pattern emerges when correction periods come after sudden rises. As a result, the pattern creates new support and resistance levels.
“What a great start for Bitcoin The stair-stepped price action looks fantastic from the very beginning. It offers many opportunities.”
CPI figures announced on January 12 in the USA revealed that inflation decreased slightly. As CPI data met expectations, upward and downward forecasts were invalid.
Speaking in the Daily Price Action news bulletin, Bennett said one day before the CPI figures were announced, that the CPI’s miss would significantly move the markets.
“The year-over-year CPI estimate was 6.5%. A number below this will mean an increase for risky assets, and a number above this will mean a decrease.”