A Major Decline is Imminent for the US Dollar Index, Analyst Says
A well-known crypto trader predicts that the US Dollar Index (DXY) is on the brink of a significant decline following a months-long rally. The pseudonymous analyst, Bluntz, shares his insight with his 224,800 followers on X, a social media platform. According to Bluntz, the DXY is likely to resume its downward trend after completing a key Elliott Wave theory pattern.
The DXY measures the value of the US dollar against six major currencies. Traders closely monitor the DXY as a weak index implies that investors prefer risk assets such as stocks and cryptocurrencies over the dollar.
Bluntz suggests that the DXY is close to topping out and beginning a major decline. He believes that an ABC correction is currently underway, which is part of the Elliott Wave theory. This correction would mark a three-wave move opposite to the prevailing trend. Bluntz’s chart indicates that the DXY could drop to 95 by early 2024.
Bluntz’s prediction for the DXY aligns with his previous forecast regarding Bitcoin (BTC). He anticipated that BTC would conclude an ABC corrective pattern and resume its upward trend.
The analyst also warns of an impending “savage” collapse for Binance Coin (BNB). According to him, BNB is on the verge of losing key support as it tests the $205 level. Bluntz previously predicted that BNB would dip towards $192.
Currently, BNB is trading at $211, reflecting a 2.8% increase in the past 24 hours.
Hot Take: US Dollar Index Faces Major Decline, Binance Coin (BNB) Vulnerable
A popular crypto trader predicts that the US Dollar Index (DXY) will experience a significant decline after its recent rally. The analyst, known as Bluntz, suggests that the DXY is close to reaching its peak and will soon enter a major downward trend. This projection aligns with Bluntz’s previous prediction about Bitcoin’s price movement. Additionally, he warns of an imminent collapse for Binance Coin (BNB), which is currently testing a crucial support level. Investors should closely monitor these developments in the forex and cryptocurrency markets.
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