Popular crypto strategist Kevin Svenson says one closely followed index that can indicate Bitcoin’s (BTC) market dominance is starting to flash a bottom signal.
In his crypto newsletter, Svenson says the US Dollar Index (DXY) is now behaving similarly to it did back in 2015, where it correlated to a Bitcoin bottom with sideways trading.
The trader says the US dollar is losing its momentum and breaking a parabolic trend, a possible signal Bitcoin will start to see key support at its current price level and trade sideways for a while instead of dipping to lower price levels. He also says that the FTX crypto collapse may continue to impact the crypto space and put downward pressure on Bitcoin’s price.
“We have a very important macro shift in the DXY happening. The US Dollar Index is repeating the same market structure that allowed BTC to bottom in 2015. It is unclear if the recent contagion will make a further impact on the market, but it is common for major players to ‘go bust [downtrend emoji]’ toward the end of a bear cycle.
There is potential for lower prices as these exchange collapses play out, but this is usually a sign we are nearing a cycle bottom. The US Dollar Index (DXY) breaking its parabolic trend is the main positive signal I see in the charts. This could allow BTC to gain support and start going sideways instead of straight down.”
At time of writing, Bitcoin is changing hands at $16,719.
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Aiolhoz/Sensvector
The post Top Crypto Analyst Says Historical Bottoming Signal for Bitcoin (BTC) Just Started Flashing appeared first on The Daily Hodl.
