The waning strength of the US dollar index (DYX) may be a catalyst for a renewed bull market for Bitcoin (BTC), according to Glassnode founders Jan Happel and Yann Allemann.
The founders, who share the Negentropic handle on the social media platform X, point to the DXY chart, which measures the strength of the US dollar against a weighted basket of other major foreign currencies.
[adinserter block="1"]According to analysts, DXY likely just printed a top in an expanding diagonal pattern, implying that a significant downward move to the lower bound of the pattern’s range and possibly beyond is underway.
“Did DXY top in expanding diagonal?
We think it did – and the downside will bring a lot of tailwind to crypto and BTC”
While some are looking for cheaper Bitcoin, the Glassnode founders say that BTC has already touched the downward price target of $60,000 they called for last month.
“BTC hit our 60K target we mentioned a month ago”
On March 13th, we hit 69K #Bitcoin. We mentioned then that nothing moves in a straight line and a potential correction to the 60K level by mid-April. Today, we're at around 60K. Nailed it! https://t.co/P3FfKICFbi
— ??????????? (@Negentropic_) April 19, 2024
The Glassnode founders believe that the latest Bitcoin correction that sent BTC briefly below $60,000 may have cleared the way for the crypto king to rally to fresh all-time highs.
“BTC shows resilience!
BTC displays remarkable resilience as it swiftly rebounds from the critical $58,000 support level, with the relative strength index (RSI) suggesting a shift towards bullish momentum.
With sights set on breaching $68,000 and beyond, optimism permeates the market. Yet, caution remains paramount, as any downward movement below $58,000 threatens to derail the ongoing bull market trend.”
At time of writing, BTC is worth $65,253.
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