BTC price broke down from the crucial psychological levels at $39,000 during the early trading hours and noe on its way to slumping below $38,000 too. It was predicted well before, that the market appears pretty bearish and hence a significant dump may be pre-programmed. On the other hand, the strengthening of the DXY Index has become a huge concern which may get intensified very soon.
Interestingly, the descending trend within the crypto space and the stock markets may continue as the USD may get more strength in the coming days. The DXY Index is approaching some crucial levels that may determine the future course of action. A popular analyst believes that if DXY Index surges another 6% to 7%, Bitcoin price may witness lower levels very soon.
After a parabolic recovery, the DXY Index may be primed to shed some gains, but not to enter a bearish trend. The cup from the Cup n Handle pattern appears to have formed and hence with a slight pullback, the handle may be pre-determined. Therefore, after a slight correction, the Index may rise high which is not a good thing for Bitcoin and the entire crypto space.
Currently, the RSI is raising very high and hence the DXY Index may continue raising towards the local resistance. And hence a huge buying volume has been accumulated, and hence even if the Index falls, it may be a short-lived one. Therefore, this time we can expect the Bitcoin(BTC) price to stabalize a little. However, if the DXY Index flips from the bearish trend, the Crypto space may remain within the control of bears for a long time.