DXY Trend Breakdown
Since July, the US Dollar Index (DXY) has been on an upward trend. However, this trend was broken on October 9, signaling a shift in market sentiment. Technical analyst Gert van Lagen highlighted this change, indicating a bearish outlook for the DXY. The index dropped by 1.2% on November 3, currently undergoing a retest of the channel, reinforcing the bearish stance. Additionally, a rejection at a high timeframe Fibonacci resistance area further supports the negative outlook for the DXY.
Bitcoin’s Bullish Trajectory
Amidst the weakening DXY, Bitcoin’s inverse correlation becomes significant for crypto investors. Van Lagen notes a bullish pattern emerging on Bitcoin’s 6-hour chart, with a target price of $46,000. The chart displays Bitcoin’s price consolidating in a pennant structure, part of an ascending channel. This suggests that the breakout is likely to continue in the bullish direction, with a targeted price of $46,000 upon resolution of the pennant.
Hot Take: Potential Upside for Bitcoin
Van Lagen’s analysis presents a bullish case for Bitcoin as it targets $46,000 amid the weakening DXY. With clear technical patterns and price targets identified, this analysis provides valuable insights for crypto traders and investors to consider.
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