The crypto space is expected to be in dire straits as the top crypto, Bitcoin is currently switching above and below $19,000. The shaky environment could be due to the strengthening of the USD as the DXY index is surging high and marking a new 20-year high. Presently, the index has jumped above $113, making a new yearly ATH.
In the times when DXY Index is marking new highs, the crypto space has been impacted negatively. On the brighter side, the index is closer to dropping significantly close to $112 or below, but may soon rise above $114.
As per the above chart, the DXY index is assumed to drop as it did before in 2015-16. Here the DXY underwent a parabolic recovery from wave 1 to 3 after rebounding from wave 2. Further, the rally dropped to hit the 4 and later rebounded to wave 5. A similar trend is expected to repeat in recent times and may drop to $112 and later rise back beyond $114.
Therefore, a minor bounce may be expected with Bitcoin & entire crypto space. But as the index rises, the crypto markets may fall apart. Presently, the BTC price is again dropping back towards the demand zone between $18,277 and $18,928. If the asset fails to rebound from these levels, the price may witness a huge bearish trend in the coming days.
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