• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Win 1 BTC
  • Play Finance
Breaking News: Breaking: Arbitrum Announces The Launch Of Its New Token ARB, Transitioning To DAO
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Win 1 BTC
  • Play Finance
Bitcoinist.com
No Result
View All Result
Breaking News: Breaking: Arbitrum Announces The Launch Of Its New Token ARB, Transitioning To DAO
bitcoin dollar dxy
Advertisement

Timing A Dollar (DXY) Trend Reversal And Its Impact On Bitcoin

Tony "The Bull" by Tony "The Bull"
11 months ago
in Bitcoin
0
Advertisement

The DXY Dollar Currency Index is above the 100 level for the first time since the pandemic struck and lax monetary policy sent Bitcoin — and inflation rates — soaring. 

When or will the trend weaken, and what might continued strength or sudden reversal mean for Bitcoin and the rest of crypto?

Don't wait! Jump on this Crypto Deal and get a 150% Welcome Bonus plus 100 Free Spins on your deposit today!

Fed Rate Hike Expectations Push DXY To Two-Year High

Global markets have taken a beating following the US Fed announcing a series of rate hikes in a response aimed at curbing the highest inflation rate in more than 40 years. 

Fed Governor Lael Brainard this week claimed a series of rate hikes and aggressive balance sheet runoff would help to quickly correct monetary policy imbalance and take the Fed to more neutral levels. The comments pushed the DXY Dollar Currency Index to a two-year high. 

Related Reading | Dark Tetrad: Study Shows Crypto Investors Have The Worst Personality Traits

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Play Now!

The dollar strengthens when rate hikes are expected. The DXY is a basket of currencies trading against the dollar. Weakness in currencies like the yen have contributed further to DXY dominance. 

Because Bitcoin trades inversely to the dollar, the ongoing rally in the DXY has also resulted in lower cryptocurrency valuations across the board. However, some relief could be due before the month is over. 

DXY_2022-04-14_19-37-47

The TD9 sell setup has bee perfected on the monthly | Source: DXY on TradingView.com

The Dollar’s End And The Trend’s Impact On Bitcoin

According to the TD Sequential indicator created by market timing wizard Thomas Demark, the DXY monthly has perfected a series sell setup with a 9-count. After a specific sequence of candles reaches a 9-count, the indicator points out potential reversals in the making. 

A reversal at current levels would allow Bitcoin to continue its bull run. But trending assets can ignore a perfected TD9 setup. Breaking beyond the current resistance level here for the DXY could also send Bitcoin plummeting below support. 

Opposing bear and bull divs appear on the DXY (left) and Bitcoin (right) | Source: BTCUSD on TradingView.com via Moe_Mentum

Much like Bitcoin’s trend took a pause for some consolidation, even a trending DXY must slow down eventually. If that time isn’t now with the TD sell setup, what else might cool down the greenback?

Two of the hottest topics at the recent Bitcoin conference were inflation, and the petrodollar’s dominance globally. If inflation in the US reduces the buying power of US dollars, then so does any capital parked in USD during the rate increase-related downtrend in assets over the last several months. 

Related Reading | Bitcoin 2022 Miami: Final Thoughts And Conference Reflections

The dollar’s global reserve status is also at very real risk. Among the many systems designed to keep the dollar in power is tied to oil trade. The petrodollar system means countries abroad must keep a supply of dollars on hand to trade oil in the global reserve currency. Oil-producing countries, however, are for the first time considering doing business in rubles or yuan to reduce dollar dominance around the globe. 

Will the DXY make it though resistance and send Bitcoin to a capitulation low, or will this TD9 sell setup potentially signal the end of the dollar’s reign?

Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice.

Featured image from iStockPhoto, Charts from TradingView.com
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.

Tony "The Bull"

Tony "The Bull"

Tony "The Bull" is a level 3 CMT student (passed level 1 & 2), technical analyst, Bitcoin supporter, and avid speculator. Tony is deeply fascinated by core market principles such as Elliott Wave Theory as they tie into mathematics like Fibonacci ratios. Market timing though DeMark indicators, Ichimoku, Gann tools, or Hurst Cycle Theory are also of key interest. Tony provides completely original content driven by exclusive, independent research. For more insights and education from Tony, check him out on Twitter or in his free TonyTradesBTC Telegram channel. Follow @TonyTheBullBTC on Twitter and search CoinChartist on YouTube.

Related Posts

Bitcoin

Bitcoin Bullish Signal: Transaction Activity Hits Highest Since April 2021

7 hours ago
bitcoin 1970s gold fractal

Is Bitcoin Following An Explosive 1970s Gold Fractal?

9 hours ago
Banking Crisis Causes $26 Billion Increase in Bitcoin Market Cap

Banking Crisis Sees Bitcoin Market Cap Rise By $26 Billion

9 hours ago
Bitcoin (BTC)

Bitcoin Could Continue Rally Amid Intensified Banking Crisis, Here’s Why

13 hours ago
Bitcoin

Major Bitcoin ATM Maker Hacked, Over $1.5 Million In BTC Stolen

17 hours ago
Bitcoin BTC macro this week

Big Week Ahead For Bitcoin And Crypto: This Will Be Key

19 hours ago
Please login to join discussion

Premium Partners

Premium Casino Partners

Play Finance

Top Casinos

BitStarz
BitStarz
Punt Casino
Punt Casino
mBit
mBit
1xBit
1xBit
Coinplay
Coinplay
K8
K8

Sportbooks

Coinplay
Coinplay

Press Releases

  • Cryptocurrency News Today: Shiba Inu Burns Tokens While...

    12 hours ago
  • Vote-to-Earn Project Love Hate Inu Raises $1 Million &...

    17 hours ago
  • Get Ready to Save Animals and the Environment with...

    20 hours ago
  • Investors Turn to TMS Network (TMSN) As Tron (TRX) And...

    20 hours ago
  • Investors Have Lost Confidence in Solana (SOL) And Ripple...

    20 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2023 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Win 1 BTC
  • Play Finance

© 2022 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.