Attached are two charts: the first, a 4-hour chart of BTC against USD, at a price of $17.337, and the second, of the US dollar index, in a daily timeframe, at a level of 103.05 (both of them self-made in Tradingview). They are related, in the sense that both generally act in decorrelation, in such a way that when one rises, the other moves in the opposite direction. I will refer to the dollar, in the first instance, where we observe a “death cross”, since Friday, when the 50-period moving average crosses downwards the 100-period moving average. Technically, this happens when there is a clear downward trend of the asset in question, which will be shown until the medium term, due to its temporality. As for Bitcoin (BTC), we see that its behavior, precisely from that same date, has been upwards, and it has done so not with “white candles”, but consistently and robustly, which, also in the medium term, could be an indicator of a change of trend, ratifying at the same time the lows of this bearish stage, which we have been witnessing for a year now. We will keep you updated on further developments.
In the attached chart you can see the decorrelation, or negative correlation, between the US Dollar index (Japanese candlesticks) and Bitcoin (turquoise color). The movement is contrarily precise, in the same time frame, which gives further support to the above analysis.
