A widely followed crypto analyst says Bitcoin (BTC) could rush to new all-time highs (ATHs) with a boost from one key driver.
In a new strategy session, crypto analyst Jamie Coutts tells his 10,200 followers on the social media platform X that the top crypto asset by market cap will surge to record highs if the DXY (U.S. Dollar Index) begins a downtrend.
“Bitcoin is stuck with the Dollar.
Chart: BTC vs DXY (inverted).
Once the DXY breaks 99.5-101 there is little support until the low 90’s.
BTC would likely reach new all-time highs in that scenario.”
The DXY is currently sitting at 103.1, a 0.4% decrease during the last day.
According to Coutts, the crypto king is susceptible to “mid-cycle overheating,” which he says happened during its last two cycles.
However, the analyst says that this time around, he expects the pull-back to be as brief and shallow as it was in 2016 as opposed to the deeper, more dramatic correction of March 2020.
“Mid-cycle overheating has been a feature of the last two Bitcoin cycles. This time was no different. The positioning in the derivatives market was almost cycle-peak-level insanity. The question is whether this pullback is more like 2016 or 2019. My bet is on the former.”
Bitcoin is trading for $40,800 at time of writing, a 2.1% increase during the last 24 hours.
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
