Home Markets Indicator is likely to determine if Bitcoin remains in a bear market, says crypto analyst Benjamin Cowen

Indicator is likely to determine if Bitcoin remains in a bear market, says crypto analyst Benjamin Cowen

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Indicator is likely to determine if Bitcoin remains in a bear market, says crypto analyst Benjamin Cowen

Popular crypto analyst Benjamin Cowen believes that an indicator is likely to determine whether Bitcoin (BTC) remains in a bear market.

In a new strategy session, Cowen tells his 764,000 YouTube subscribers that Bitcoin has always been inversely correlated with the US Dollar Index (DXY).

The DXY measures the value of the dollar against a basket of six foreign currencies.

says Cowen,

“Now a lot of times when you see the dollar go up, it’s kind of like a wrecking ball: it drives most other things down. Generally, you might see it as people fleeing to the relative safety of the US dollar.

Cowen says the Dollar Index has been in a general macro uptrend since 2008. He notes that bear markets in Bitcoin have tended to correlate with strong rises in the Dollar Index and vice versa.

“The general relationship, as we discussed, is that as long as the dollar is rising, we would expect Bitcoin to stay more or less either in a bear market or in the very early stages of its accumulation phase.”

Source: Benjamin Cowen/YouTube

Bitcoin is trading at $21,114.98 at the time of writing. The top-ranked crypto asset by market capitalization is down more than 16% in the past five days. Meanwhile, the DXY is up around 2.3% this week.

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