More

    Double Bottom On The Dollar Could Be The End Of Bitcoin Rally

    Bitcoin, Ethereum, and just about every other asset on the planet trades against the dollar on its most liquid trading pair, and the greenback is the base currency that all exchanges rates are based on. The power and influence of the almighty dollar cannot be understated, and the crypto market could soon feel the surprising sting of the global reserve currency.
    A double bottom could be forming on the dollar, with a hidden bullish signal that could bring a hurting to the currently overheated stock and crypto market. Here’s a closer at the double bottom formation that could put a stop to Bitcoin’s bull market.
    Double-Bottom Forms On The Dollar Currency Index
    The slow death of the dollar has let equities and crypto assets like Bitcoin fly like never before, during a time when the economy was on pause and unemployment was climbing. Stimulus money kept things afloat, while those who didn’t need the money for essentials bought shares of GameSpot and hundreds of thousands of DOGE.
    Related Reading | Broken Parabola: Mapping Out The Bitcoin Bull Market And More
    The soaring market caps of assets everywhere was a glaring sign that inflation was getting out of hand, and the US government has been taking steps to reel things in. And it has already taken a toll on Bitcoin, resulting in the top cryptocurrency returning to below $55,000.
    Recent comments about stock market “froth,” “risk appetite,” and a random warning today from the SEC that Bitcoin is a “highly speculative” asset are suspect in terms of timing.
    At the same time, an Adam and Eve double bottom could be forming on the DXY Dollar Currency Index, and it is ready to take a dent out of crypto gains.

    Is an Adam and Eve bottom forming on the dollar? | Source: DXY on TradingView.com
    Why Bitcoin Could Be In Trouble If The Greenback Bounces
    An Adam and Eve double bottom is a rare structure that results in new highs. Failure, sends the asset tumbling even lower than the support level that greenback bulls are attempting to confirm as ironclad.
    This type of double bottom structure is also found on the likes of Litecoin and other cryptocurrency price charts.
    Superimposing the Bitcoin price chart specifically over the same DXY price chart, with the logarithmic MACD activated, things become more clear regarding the bearish change in trend that could be taking place.

    Bitcoin could be due for a reversal if the DXY rips higher | Source: DXY on TradingView.com
    The last major rebound and bullish crossover in the DXY also was the peak of the 2017 bull market. The dollar bounced sharply, while the first ever cryptocurrency started a bear market.
    Related Reading | Creator Of Flawless Top Indicator Says Bitcoin Isn’t Done, Despite Signal
    This time around, the dollar is taking its sweet time in turning around, forming a short-term double-bottom in addition to the longer-term one dating back to the last cycle top.
    There’s also a hidden bullish divergence forming on the LMACD, all while Bitcoin grinds at resistance, struggles with $60,000, and rare top signals have appeared. Is this the end of the Bitcoin bull run already, or will the dollar’s attempt to get back on its feet fall flat on its green back?
    Featured image from iStockPhoto, Charts from TradingView.com

    Related articles

    Comments

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Share article

    Latest articles

    Newsletter

    Subscribe to stay updated.

    bitcoin
    Bitcoin (BTC) $ 39,350.00
    ethereum
    Ethereum (ETH) $ 2,491.80
    tether
    Tether (USDT) $ 1.00
    binance-coin
    Binance Coin (BNB) $ 362.42
    cardano
    Cardano (ADA) $ 1.54
    dogecoin
    Dogecoin (DOGE) $ 0.323996
    xrp
    XRP (XRP) $ 0.875931
    usd-coin
    USD Coin (USDC) $ 1.00
    polkadot
    Polkadot (DOT) $ 21.87
    uniswap
    Uniswap (UNI) $ 22.96
    bitcoin-cash
    Bitcoin Cash (BCH) $ 613.65
    litecoin
    Litecoin (LTC) $ 169.62
    solana
    Solana (SOL) $ 38.13
    chainlink
    Chainlink (LINK) $ 23.43
    binance-usd
    Binance USD (BUSD) $ 1.00
    matic-network
    Polygon (MATIC) $ 1.45
    theta-token
    Theta Network (THETA) $ 8.78
    internet-computer
    Internet Computer (ICP) $ 64.06
    stellar
    Stellar (XLM) $ 0.340144
    ethereum-classic
    Ethereum Classic (ETC) $ 58.10
    wrapped-bitcoin
    Wrapped Bitcoin (WBTC) $ 39,249.00
    vechain
    VeChain (VET) $ 0.111107
    filecoin
    Filecoin (FIL) $ 73.29
    tron
    TRON (TRX) $ 0.071065
    dai
    Dai (DAI) $ 1.00
    eos
    EOS (EOS) $ 5.04
    monero
    Monero (XMR) $ 262.91
    aave
    Aave (AAVE) $ 311.87
    kusama
    Kusama (KSM) $ 422.73
    cdai
    cDAI (CDAI) $ 0.021498
    okb
    OKB (OKB) $ 13.85
    neo
    NEO (NEO) $ 49.89
    shiba-inu
    Shiba Inu (SHIB) $ 0.000007
    algorand
    Algorand (ALGO) $ 1.07
    bitcoin-sv
    Bitcoin SV (BSV) $ 170.35
    compound-usd-coin
    cUSDC (CUSDC) $ 0.022054
    amp-token
    Amp (AMP) $ 0.066013
    crypto-com-chain
    Crypto.com Coin (CRO) $ 0.120451
    pancakeswap-token
    PancakeSwap (CAKE) $ 16.66
    iota
    IOTA (MIOTA) $ 1.07
    cosmos
    Cosmos (ATOM) $ 12.36
    celsius-degree-token
    Celsius Network (CEL) $ 6.95
    compound-ether
    cETH (CETH) $ 49.71
    theta-fuel
    Theta Fuel (TFUEL) $ 0.541726
    ftx-token
    FTX Token (FTT) $ 33.05
    maker
    Maker (MKR) $ 3,139.23
    tezos
    Tezos (XTZ) $ 3.26
    leo-token
    LEO Token (LEO) $ 2.81
    avalanche-2
    Avalanche (AVAX) $ 14.67
    klay-token
    Klaytn (KLAY) $ 1.01