Bitcoin has been struggling with the lowest low levels in recent weeks, leaving many investors wondering whether the original is about to the main bear cycle. However, a rare data point linked to the US dollar power index (DXY) indicates that there is a major shift in market dynamics that may be imminent. This Bitcoin's purchase signal, which appeared only three times in the history of BTC, can indicate a bullish reflection despite the current declining feelings.
To take a more deep look at this topic, check out the recent YouTube video here:
Bitcoin: This only happened 3X before
BTC opposite DXY Reversal
Bitcoin's work has always been inversely associated with US dollar power index (DXY). Historically, when it strengthens DXY, BTC tends to struggle, while DXY is often cursed the conditions of the macroeconomic economy to estimate the price of bitcoin.
Despite this upholstered bullish effect, the Bitcoin price continued to decline, as it recently decreased from more than $ 100,000 to less than 80,000 dollars. However, the previous events of this rare DXY decline indicate that the late BTC recovery but it is still possible to be in play.
Bitcoin purchasing signaling signal
Currently, the DXY was in a sharp decrease, a decrease of more than 3.4 % within one week, a change rate that was only seen three times on the entire trading date in Bitcoin.
To understand the possible impact of this DXY sign, let's examine the previous three cases when this sharp decline occurred in the US dollar power index:
- 2015 post lead market
The first occurrence was after the BTC price decreased in 2015. After a period of unification of the sides, the BTC price saw a significant increase in escalation, and gained more than 200 % within months.
The second representation occurred in early 2020, following the collapse of the sharp market caused by the Covid-19. Similar to the 2015 case, BTC initially witnessed volatile prices before the emergence of a rapid upward trend, and reached its climax in a multi -month gathering.
- 2022 Bear Market Recovery
The latest occurred at the end of the 2022 bear market. After a preliminary period of installing prices, BTC followed continuous recovery, price climbing much higher and starting the current bull cycle during the following months.
In each case, the sharp decrease in DXY followed a standardization stage before BTC has embarrassed in a large bullish race. The price of the price of these three cases is overwhelmed by our current prices, we get an idea of how things can be played in the near future.
Stock markets relationship
Interestingly, this style is not limited to bitcoin. A similar relationship can be seen in the traditional markets, especially on the Nasdaq and S&P 500. When DXY excels sharply, stock markets have historically outperformed the baseline returns.
The average medium return for 30 days on the Nasdaq Stock Exchange is a similar DXY decline 4.29 %, which is much higher than the standard return for 30 days by 1.91 %. With the expansion of the window to 60 days, the average return on the Nasdak Stock Exchange increases to approximately 7 %, increasing the typical performance of approximately 3.88 %. This link indicates that the performance of Bitcoin after the DXY retreat is in line with the historical market trends, which enhances the argument of the late but inevitable response.
conclusion
The current decline in the US dollar power index is a rare and historical bitcoin signal. Although BTC's immediate basic procedure is still weak, historical precedents indicate that the unification period is likely to follow a large gathering. Especially when strengthening it by monitoring the same response in indexes such as NASDAQ and S&P 500, the large -scale total economic environment is based on BTC.
Explore live data, plans, indicators and in -depth research to stay at the top of bitcoin prices Bitcoin Pro magazine.
Liability: This article is intended for media purposes only and should not be considered financial advice. Always perform your research before making any investment decisions.