Short

📊 U.S. Dollar Index Ultra Bearish (Bullish 4 Bitcoin / Crypto)

Updated

Last week the DXY closed as a "Shooting Star", a strongly bearish candlestick pattern.

Now, this pattern as it happens with many others needs some context in order to be of value.

For example, the Shooting Star needs to happen at the top of a trend, which is obvious here as the DXY grew straight up since mid-July.

The next requirement is confirmation and this can happen anytime... As long as the DXY trades below 107.348, this bearish signal remains valid, in place.

✔️ 11 Weeks closing green... Amazing.
✔️ It is normal to see a correction after a strong move.
✔️ We shouldn't be surprised if a strong drop in this index starts to develop any day.

👉 If the DXY goes down, Bitcoin goes up.

Namaste.

Note

The DXY daily timeframe has also gone bearish.

First, the current price is now aiming towards the major MA200 moving average (black line on the chart)

Then, we never had 4 red days.
We had 3 red days and the resumption of the bullish trend in late August.
The DXY is now set to produce a 4th red session today.

This session has many bearish indications... Let's have a look at it together:

First, again, it has a long upper wick/shadow and is now trading below EMA10.
If it closes near the current price or lower, it will produce another shooting star.

Here is the daily MACD:

Bullish is what you see in July, coming from a low and curving up.
Bearish is what we see now... Curving down, a bearish cross after a new high shows up.

The RSI is resting at support:

But recently it was overbought for the first time since September 2022.
There is room for it to move lower and thus the DXY to weaken.

Just a small update.

Thank you for reading.
Your support is appreciated.

I am wishing you the best.

Namaste.

Note

On the 4H timeframe the DXY lost EMA100 as support and we have multiple bearish crosses between the moving averages... It looks pretty bad:

On the daily timeframe, 4 sessions already confirmed red, this is the first time since mid-July.

Today is the 5th session and also red, strong red.
The DXY is currently trading below EMA21 (105.794) which confirms the short-term bearish bias.

Moving below EMA10 activates the bearish potential and below EMA21 this bearish potential is confirmed.

The breakdown of this rising trend line is another major development, this bearish signal is only confirm once today's session ends.

This is all extremely bullish for Bitcoin and the Cryptocurrency market.

Surely other assets are also negatively and positively correlated to this index but our interest lies in Bitcoin and the Altcoins market, you can use this information in the best way you can.

Thank you for reading.
Thanks!

Note

We have a new rejection at EMA10 for the DXY 4H timeframe, a very strong bearish signal:

5 sessions/days already closed red.
I went back to see how often this event happens and it is quite rare, the DXY closed red more than 5 days only once since the year 2020 and that was in early July this year before the strong bullish pullback we experienced.

Here is the chart:

What does this mean?

First, today's session already moved up (long upper wick) and is now trading lower compared to the open, which is bearish intra-day. EMA21 (105.787) being confirmed as resistance.

When the day closes, we are looking at 6 consecutive days red with the next support at 104.817 or EMA50... A strong downtrend is developing and we are witnessing the beginning of it.

This type of action signals the start of a major bearish wave.

Patience is key on the other side... The Cryptocurrency market/Bitcoin, is producing a final shakeout before moving ahead.

Note

The U.S. Dollar Index (DXY) bearish bias continues to strengthens and now consolidating before a major drop.

Last week closed green and this week red again.
This works as bearish confirmation, it might be the last green week in a while or least the bears momentum will grow next:

The daily timeframe is so clear... Trading back below EMA10 = bearish potential on top:

A lower high 13-Oct vs 3-Oct...
When the massive crash happens, inversely Bitcoin will shoot up.

3,000 to 5,000 points up in a single day?
I am talking about Bitcoin, this is what will happen when the DXY bearish wave develops because it is still at the top/high, plenty of room to move lower.

Namaste.

Note

Yesterday the DXY closed below EMA21 on a strong bearish candle, this predicts much lower prices.

The bearish bias is starting to unravel now with the second red week:

We have potentially months of lower prices for this index which in turn means that Bitcoin and Cryptocurrency can go up for months.

The above prediction became true "3,000 to 5,000 points up in a single day?
I am talking about Bitcoin [...]"

Bitcoin grew around 5,000 in a single day.

Thanks a lot for your support.

Note

DXY Update

While things can definitely change, watch out because this index is still within the bears grasp... Let me show you.

This is the DXY on the daily timeframe:

Notice that even though we have three days green yesterday ended as a clear "Lower HIGH".
Yesterday's session also ended with a bearish candlestick pattern based on the long upper wick.

This action is happening within a consolidation pattern.

For the DXY to reopen its bullish potential it would need to close daily above its 3-Oct high of 107.348.
While the chart is technically bullish, the potential is bearish based on a peak recently hit.

➖ Remember, bullish potential develops at low prices, bottom patterns and near support.
➖ Bearish potential develops near resistance, at new highs when a bullish wave goes for long.

While bullish and bearish can be read in many different ways, the whole purpose of technical analysis is to predict what might come next.

Technical signals can be considered bullish but the bearish potential is great.
There is lots of potential for a drop as long as the DXY trades below resistance.

Namaste.

Note

Looking at the 2-Oct weekly session, we received from the chart the first major bearish signal after a very strong bullish wave in the form of a shooting star candlestick pattern, the distribution phase (bearish consolidation before a drop) continues.

Now, looking at the DXY daily, we have another shooting star to confirm a lower high together with a falling window, this all predicts massive bearish momentum to develop soon.

While Bitcoin/Cryptocurrency has been growing strong, the DXY drop is yet to get started...
When the DXY crashes down, Crypto will shoot up strong.

Note

This is a most important and major development on the DXY.

This is basically the most important chart in the world because the USD is the worlds reserve currency.

We have multiple charts and signals to look at so take your time and join me...

This week the DXY went the lowest since the shooting star bearish signal.
All gains removed back to September 2023. If this week closes red/bad, the next week is likely to be pretty bad (worse)!

This would also signal the first break below EMA10 weekly since June 2023.
This is huge... This means that Bitcoin is set to grow so much that it is hard for me to impress upon you how big this is, so I can only read the signals and trust that you will make the most of this information.

We also have the worst daily session/candle since July 2023.

The first break below EMA50 as well since July.
Breaking below = correction confirmed.

This is big... Prepare for massive growth for Bitcoin and the Altcoins (Cryptocurrency).
👉 This is based on the inverse correlation between the DXY and BTCUSD. This also applies to stocks and the rest.

Thank you for reading.

Namaste.

Note

Today the DXY starts with a bearish candle, producing a continuation and confirmation of lasts week analysis.

The weekly timeframe also confirmed its drop below EMA10.

This simply tells us that we won't have to wait to see Cryptocurrency growing, it can keep on growing right away.

The DXY chart is also telling us that there is plenty of space left for more red.

This is literally the beginning.
The drop will speed up as seen in early July.

Right now we are being conservative with these targets but each time the DXY corrects it hits a new low since it has been in a downtrend after the September 2022 All-Time High.

This means a lot for all markets... A new low would mean the index going below 99 and hit the lowest levels seen since April 2022.

We will continue to track.

Note

The DXY closed November 10 red, bearish as it moved below EMA10.
Yesterday the DXY closed again bearish, after being rejected by EMA21 and EMA10 (bearish confirmation).

Today, the DXY is moving below EMA50, a major support fails.
Moving and close below EMA50 daily activates medium-term bearish potential.

As the DXY is currently bearish, even though these candles are weak, we can expect Bitcoin to continue growing.

For the DXY to become bullish it would need to first move above EMA21 daily (105.886) and then close at a new high compared to 1-Nov. This is quite the task since we have lower highs since 3-October when the bullish wave peaked.

In conclusion: Slowly but surely the DXY is set to continue lower, based on the daily timeframe chart signals.

The weekly timeframe supports this notion even though we are still within the distribution phase.
The real drop/crash/correction is yet to happen... Think of what this means for Cryptocurrency, Bitcoin!

Namaste.

Note

The DXY just broke-down below EMA50 and hit its lowest level since September 2023...

The crash is on!

Note

Here is the DXY on the daily timeframe.

➖ MA200 tested as support and holds, it matches 0.5 Fib. retracement.
➖ EMA50 failed as support. This level can now be tested as resistance.

The long-term bearish bias remains valid.
A short-term bounce (upward correction) can develop here.

Namaste.

AlanSantana

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