This is a daily technical analysis of Coindesk analyst and chartered market technician Omkar Godbole.
Bitcoin
Bulls are optimistic that the US dollars wider sales will continue in the second half of the year, which is burning for Crypto Bull Run.
However, a card guarantees caution when they are dependent on the Bearish dollar predictions. It’s the Dollar Index’s Weekly Diagram showing the 50-week’s simple sliding average (SMA) is on the way to crossing during the 200-week SMA in the short term and forming the notorious Death Cross.
While the ominous sounding pattern is considered a prolonged bearish signal, it has historically turned out to be a bear trap that consistently marks the bottom bottom and bullish trend turns in the US dollar.
The diagram below shows that DXY has prepared four weekly card deaths since 2009, and each of them marked the end of downtrends (marked with vertical lines)Setting the scene for sharp events.
The last one took place in January 2021 and marked the bottom around 90.
Note that price patterns do not always unfold as expected, which means that the impending Death Cross may not necessarily catch bears; However, paying attention to its previous trend can help dealers manage their positions more effectively.
The dollar index, which tracks Greenback’s value against larger Fiat currency, refueled by 10.78% in the first half, its worst performance since 1991.
