The daily chart of the US dollar (DXY) shows bearish divergence. This occurs when there is a higher high in the price and a lower high on the RSI over the same time period. The blue MACD line also crossed below the red signal line, indicating a change in trend to negative for the dollar. This set up indicates that the price of the dollar could fall further to an oversold condition. A fall in the dollar would likely drive a rise in Bitcoin, Ethereum and other crypto as they tend to have an inverse relationship. It is important to note that crypto has been trading closely with the stock market. I recently posted about how the SPY has a bullish divergence on the daily chart with RSI. This could lead to a stock market rally in the near term, which would mostly likely result in a Bitcoin and crypto rally.
Let me know your thoughts in the comment section.
David Zanoni
Let me know your thoughts in the comment section.
David Zanoni
