DXY Index Reaching the Major Resistance, Will Bitcoin(BTC) Price Slide to ,000 or Jump to ,000?
Bitcoin and Ethereum appear to have stuck up in a narrow range including all the other major crypto assets. Moreover, the current consolidation hints at a significant bearish divergence which may drag the price beyond the local support. However, one of the main reasons that could stop the BTC price from igniting a rally is the strengthening of the U.S.Dollar. And hence a drop in the DXY index may gain enough strength.
The DXY index is gaining extreme strength for the past year after bottoming hard and slightly levels below 90. However, after undergoing a parabolic recovery, the DXY index has entered the strong resistance zone around 100. And hence a significant drop may be expected any time from now. This may however ignite a significant bitcoin bull rally towards its ATH.
On the other hand, the Bitcoin price has bounced well from the lower support after a brief consolidation. Therefore, it may be at the foothill of an explosion that may uplift the price towards the much-required levels close to $ 50,000. However, the $ 41,000 range is also extremely important to sustain to maintain a significant uptrend.
The BTC bull run is fast approaching as the rate of assets flowing out of the exchanges is increasing again. The exchange net position has reached the bottom-most levels and these levels were hit only in 3 occasions. And in all the 3 occasions, the price has witnessed an upward movement.
Therfore, the on-chain metrics point toward the Bitcoin price reaching the bottom levels at any time from now. And hence after a slight pullback close to $ 38,000, the BTC price is primed to undertake a huge flip towards the $ 50,000 within the Q2 2022 trade.
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