Popular Analyst Predicts Bitcoin (BTC) Rally, Says US Dollar Blinking Signs of End of Parabolic Rise
A closely followed crypto strategist is calling for Bitcoin (BTC) to rise as the US Dollar Index (DXY) shows signs its parabolic rally this year may be coming to an end.
In a new strategy session, Jason Pizzino tells his 279,000 YouTube subscribers that the US Dollar Index will not stop falling as it threatens to break a key support area on the high timeframe chart.
Traders are keeping a close eye on the US Dollar Index as weakness in the DXY suggests investors are shedding their dollars to buy risky assets like stocks or crypto.
says Pizzino,
“[The DXY] is at [104.506]so a close below this level will be crucial for the US dollar [index]. When it closes under [104.5], [it is] probably looks much, much weaker. It’s starting to shift the odds in favor of a weaker US dollar.”
According to Pizzino, the US dollar may be ending its parabolic rally, similar to the early 2000s when the DXY plummeted from around 120 in 2001 to around 70 in 2007.
“Really, that collapsed a bit quicker than I expected… We’ve been watching this peak occur during the previous 20-year cycle. This is during the tech boom [in 2001] and then the bust, so the subsequent bust that happened through the stock markets… But we all know from history – 2004, 2005, 2006, 2007 – nice strong years for real estate while the US dollar was falling.
We expect that this time. Sure you’ll get a few bumps. I’m not saying we’ll be throwing in roughly the same percentage, but we should tend to see the dollar fall in the later half of the cycle.”
Source: Pizzino/YouTube
Looking at Bitcoin, the crypto analyst believes BTC could retreat to $16,700 before it can start the next high.
“This means that we are once again looking to break that $17,200 high and closer to our target above $17,600. So that is our second step, our multi-day narrow range where we want to see Bitcoin for further strength and then prepare for moves above $18,600.
Source: Pizzino/YouTube
At the time of writing, Bitcoin is changing hands for $17,044.
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