Closely watched crypto analyst Jamie Coutts says an indicator with a history of calling Bitcoin Q2-Q3 rallies may be about to flash green for BTC.
Coutts tells his followers on the social media platform
DXY is often inversely correlated with risky assets: they rise when they sell out and fall when they rise.
According to Coutts, the Bitcoin rally every summer (June to September) is fueled by a weakening dollar index.
“If there was one indicator to keep an eye on whether this statement plays out accordingly or not, I think it would be the dollar. Every summer rally in BTC is accelerated by a stronger dollar, which spikes and reverses, causing BTC to skyrocket as it falls.”
With the DXY in the midst of a long consolidation streak, Coutts say that a break below 101 could be the start of a huge rally for BTC.
“Currently, DXY is trapped in a narrow consolidation range. A break above 107-108 would put serious pressure on all risky assets.
A break below 101 should mean a move into the low 90s, which, if that were to happen, would likely send BTC to $150,000 based on previous DXY moves.”
At the time of writing, Bitcoin is trading at $67,759.
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