Popular crypto analyst Benjamin Cowen says Bitcoin (BTC) investors to US dollar index (DXY) He shared that they should be careful.
Sharing his views in a new video he published on his YouTube channel, Cowen said that the rise for DXY Bitcoin (BTC) stated that it does not tend to give good results for
According to data from MarketWatch, the dollar index has been in a relatively stable uptrend since last year.
“While the US dollar is in an uptrend, unfortunately Bitcoin will be on a downtrend. This is especially noticeable when DXY’s uptrend is very strong.
On the contrary, when DXY is in a downtrend, Bitcoin tends to be parabolic, so I think it’s important to put a little more value on the US dollar currency index. Because it seems to dictate what Bitcoin will do. If you are wondering if we are at risk or on a bullish point, you can refer to DXY.”
According to Cowen, the overall market is likely risk-averse as DXY is in a strong uptrend.
The analyst also underlined that Bitcoin investors should expect the opposite.
“What we should be looking for for bitcoin to rise is to see the dollar reverse and come back rather than some fake exit where it really does nothing.
Indeed, this is exactly what we are looking for. Again, there was a reversal in 2017 and then we saw a similar situation in 2020, maybe we may experience a similar situation in 2023, but it is too early to tell. But ultimately that’s exactly what we’re looking for.”
Bitcoin was trading at $39,770.00 at the time of writing.
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.