It’s been revealed that an important analyst is addressing the US Dollar Index and Bitcoin at the beginning of 2023. Check out the latest predicitons below.
US Dollar Index
According to the latest reports, a popular crypto trader says he feels the markets are facing a “significant” moment with the US dollar signaling weakness.
Crypto strategist Justin Bennett said that the US dollar index (DXY) is testing its May 2021 trend line, which if it breaks could signal bullishness for crypto markets.
“DXY tested its May 2021 trend line today. Feels like a significant moment for markets.”
As the online publication the Daily Hodl notes, the traders closely watch the DXY for signs of weakening, which indicates investors are moving their capital away from the US dollar and into risk-on assets like crypto and stocks.
The reports also note the fact that the DXY has moved on an upward channel since May 2021, but in recent months has started to come down.
At the time of writing, the DXY is at 102.31, down from its previous close of 103.19.
Bitcoin price analysis is out
Bennett also says that Bitcoin (BTC) is off to a strong start in 2023, with the king crypto showing an upward stair-step pattern.
Just in case you don’t know, this is formed when there are abrupt moves up followed by periods of correction. The pattern creates new price levels of support and resistance.
“What a start to the year for Bitcoin. The stair-step price action has been exceptional from the start. Lots of opportunities. I still have my $16,722 long but have trimmed it to half ahead of today’s CPI (Consumer Price Index data).”
Regarding the price of BTC today, at the moment of writing this article, BTC is trading in the red, and the king coin is priced at $18,833. Stay tuned for more news.