A widely followed crypto analyst is watching the US dollar index (DXY), a measure of the US dollar’s strength against digital assets, and seeing the signs of a major jump.
Crypto traders read the DXY to measure the strength of the markets – a strong DXY usually means lower crypto prices, and vice versa.
Now, crypto analyst Justin Bennett tells his 110,000 Twitter followers that the DXY is loading like a spring for another big move.
“DXY is coiling for the next big move.”
Judging by his reading of the altcoin markets, it appears Bennett expects the DXY to move upwards, spelling bad news for crypto.
“The altcoin market cap appears to be holding below $513 billion resistance after yesterday’s close.
Not a great look for crypto at the moment.”
Looking at altcoins, Bennett says crypto oracle Chainlink (LINK) is one example of many tokens sitting on the lower end of support.
“Many crypto charts are sitting on critical support right now, LINK being one of them.”
This morning, the trader warned his followers that the support for many altcoins has just been broken.
“A lot of key supports just broke in the crypto market. Anticipating a move lower from here. Be careful out there.”
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