This is a daily technical analysis of Coindesk analyst and chartered market technician Omkar Godbole.
Dollar index (Dxy)Greenback’s value traces against larger Fiat currency, looks south after beating in the first half. Still Bitcoin’s
Diagram points to immediate downward risks.
DXY fell over 10% in the first half, its worst six months performance since the third quarter of 1991, according to Data Source Trading. US President Donald Trump’s trade war and constant calls for cuts of the foot rate allegedly weigh on Greenback.
The sharp slide has violated the 14-year-long rising trendline and pushing the MacD histogram below zero on the half-year price diagram.
The trend line division combined with the negative MacD suggests a strengthening of Bearish Momentum and points for further losses ahead.
“It seems that the USD could easily fall another 10% …. and maybe much more in the next 12-24 months,” said Dan Tapiero, founder and CEO of DTAP Capital, on X and called it a bullish headwind to Bitcoin.
BTC is facing the sale of sale of
Bitcoin’s short -term technical, especially the ongoing price action compared to the stochastic indicator, paint a gloomy image. BTC fell 1% on Monday and was lower from the top end of the bull’s flag -modtrend consolidation carved over the past six weeks.
Under such conditions, dealers typically use oscillators, such as stochastic, to confirm whether the rejection at the upper limit of the ongoing consolidation has set the stage for a renewed slide to the lower end.
In BTC’s case, the 14-day stochastic confirms the same and repeats the pattern seen in the first half of June. The oscillator is on the brink of crossing below 80 and marks a downturn from the overbought area to suggest renewed sales within the wide price range.
In other words, BTC could revise less than $ 100,000 in the short term. A fixed feature over the upper end of the consolidation will invalid the bearish signal and set the stage for a rally to $ 140,000.
Read more: Bitcoin’s Bull -Capacity Strengthens when Dollar Index -Lys pictures, NVIDIA hits record high in the middle of recession signals
