An analyst closely followed in the cryptocurrency world stated that the US dollar index (DXY) is about to lose its strength, bitcoin shared a bullish scenario for
Crypto strategist Kevin Svenson shared his views on Bitcoin price on his Twitter account with 116,200 followers, thinking that DXY’s parabolic rise is finally coming to an end.
Traders are watching DXY’s performance closely, as a bearish outlook will divert strong investors’ capital from the safe world of the US dollar. cryptocurrency and allocating it to risky assets such as stocks.
Looking at the analyst’s chart, DXY’s parabolic rally has been going on since February this year. Since then, Bitcoin has slid nearly 60% of its value from the $45,000 tag to the current $19,259 after its steep decline.
At the time of writing, DXY is trading at 112 points and still trading above Svenson’s support area.
According to the crypto analyst, the failure of BTC to form a significant rally is due to the continued strength of DXY.
“The next piece of the puzzle for this rally to continue is DXY. It’s up a bit today, so BTC is slightly bearish. Market participants are likely to expect more action from the US dollar index.”
Koinfinans.com As we reported earlier, Svenson thinks that with DXY’s parabolic rally coming to an end, Bitcoin could ignite a major short-term squeeze in just one day.
“While making a bounce here, it will break a lot of short positions and possibly start producing +20% bullish candles. You should never doubt BTC’s ability to act like this.”
Short position compression is a phrase that describes a situation that occurs when the price of an asset rises rapidly as many short sellers have to close their positions.
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.