Home Markets DXY Index Reaches New Highs, Crypto Markets Could Be in Trouble This Weekend

DXY Index Reaches New Highs, Crypto Markets Could Be in Trouble This Weekend

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DXY Index Reaches New Highs, Crypto Markets Could Be in Trouble This Weekend

The crypto space is expected to be in dire straits as top crypto Bitcoin is currently swinging above and below $19,000. The fragile environment could be due to the strengthening of the USD as the DXY index surges and marks a new 20-year high. Currently, the index has jumped above $113, making a new yearly ATH.

In the times when DXY Index marks new highs, the crypto space has been negatively impacted. On the positive side, the index is poised to drop significantly near $112 or lower, but may soon break above $114.

Source: Twitter

According to the chart above, the DXY index is assumed to fall as it did before in 2015-2016. Here, the DXY underwent a parabolic recovery from wave 1 to 3 after bouncing from wave 2. Further, the rally fell to reach 4 and then bounced back to reach wave 5. A similar pattern is likely to repeat lately and could drop to $112 and later rally back above $114.

Therefore, a minor bounce can be expected with Bitcoin and the entire crypto space. But as the index rises, crypto markets may crash. Currently, the BTC price drops again back towards the demand zone between $18,277 and $18,928. If the asset fails to rebound from these levels, the price could experience a huge downtrend in the next few days.

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