#Dollar Considerations & how it could impact risk-on assets such as #Bitcoin & #SP500 in 2023.
This past week I've seen a lot of calls expecting a #DXY bounce/rally for the upcoming weeks & months.
I'd like to share another perspective.
A thread 🧵
This past week I've seen a lot of calls expecting a #DXY bounce/rally for the upcoming weeks & months.
I'd like to share another perspective.
A thread 🧵
1/ Let's start with a #DXY analysis on the 6 months chart.
As you can see, we couldn't have had a more text book shooting star candlestick close than we've just had in December 2022.
It indicates a potential price top & reversal.
Not to mention its significance as it's on HTF.
As you can see, we couldn't have had a more text book shooting star candlestick close than we've just had in December 2022.
It indicates a potential price top & reversal.
Not to mention its significance as it's on HTF.
2/ Moving on to the 3 months & 2 months chart analysis.
4th quarter's just closed with a bearish engulfing pattern.
Same configuration for the 2 monthly.
=> It could signal lower prices to come.
4th quarter's just closed with a bearish engulfing pattern.
Same configuration for the 2 monthly.
=> It could signal lower prices to come.
3/ Monthly LMACD (M)
The monthly Logarithmic MACD looks like it's forming a bearish cross that could occur in the upcoming months.
When it happened in the past decades, usually #DXY experienced a significant drop.
The monthly Logarithmic MACD looks like it's forming a bearish cross that could occur in the upcoming months.
When it happened in the past decades, usually #DXY experienced a significant drop.
4/ From an Ichimoku perspective (W)
A month ago a significant bearish TK cross occurred and 2 months ago a big bearish candle broke the Kijun (🔵).
I shared back then my target : the Kumo (cloud).
The momentum is bearish & the weekly candle closed with an inverted hammer.
A month ago a significant bearish TK cross occurred and 2 months ago a big bearish candle broke the Kijun (🔵).
I shared back then my target : the Kumo (cloud).
The momentum is bearish & the weekly candle closed with an inverted hammer.
5/ From an Ichimoku perspective (M)
As Tenkan (🔴) didn't hold last month, I expect the price to hit its Kijun at $102. If it can't hold the price, a free fall to the Kumo (cloud) might happen.
As Tenkan (🔴) didn't hold last month, I expect the price to hit its Kijun at $102. If it can't hold the price, a free fall to the Kumo (cloud) might happen.
6/ What could be next for the #dollar & the impact on risk-on assets.
#Bitcoin & stocks are usually in an inverse correlation with the #dollar.
Based on the #DXY chart analysis above, I expect a downtrend continuation which could result in #Bitcoin & #SP500 rallying in 2023.
#Bitcoin & stocks are usually in an inverse correlation with the #dollar.
Based on the #DXY chart analysis above, I expect a downtrend continuation which could result in #Bitcoin & #SP500 rallying in 2023.
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