BTC Bitcoin - is this the bottom?
Today we take a look at the BTC long-term chart compared to the DXY - Dollar Index.
Negative correlation
The dollar index has a strong negative correlation against the BTC. A negative correlation of -1 means that when DXY makes +1%, BTC makes -1%.
In other words, when the dollar rises, the BTC falls and vice versa.
Top and Bottom Formations
In the chart it is very easy to see when the dollar formed a bottom, BTC formed a top and when the dollar formed a top, BTC found a bottom.
Current situation
We are currently in a top formation of the dollar and as mentioned several times with BTC, we are also already assuming that BTC is starting to form a bottom. This chart and their history would confirm the bottoming. Further we see also in the lower blue chart the correlation coefficient (+1 to -1). Each time before or during which the bottoms and tops were formed, a positive correlation was found. We can see this right now as well, especially the last 2 weeks BTC was able to build a positive correlation with the Dollar Index.
Forecast
Even though the long-term indicators are all already bullish and set for a trend change, we are still waiting for now. As in the 2015-2016 BTC bottom, the TOP formation of the dollar took almost 2 years and thus the bottom formation of BTC also took more like 1 year. This could happen this time as well, especially since we expect a strong recession in 2023.
Another low to $10,000 to $14,000 is still possible.
For all Hodler, it already offers itself to carry out first small long-term entries.
We will keep you updated!
Negative correlation
The dollar index has a strong negative correlation against the BTC. A negative correlation of -1 means that when DXY makes +1%, BTC makes -1%.
In other words, when the dollar rises, the BTC falls and vice versa.
Top and Bottom Formations
In the chart it is very easy to see when the dollar formed a bottom, BTC formed a top and when the dollar formed a top, BTC found a bottom.
Current situation
We are currently in a top formation of the dollar and as mentioned several times with BTC, we are also already assuming that BTC is starting to form a bottom. This chart and their history would confirm the bottoming. Further we see also in the lower blue chart the correlation coefficient (+1 to -1). Each time before or during which the bottoms and tops were formed, a positive correlation was found. We can see this right now as well, especially the last 2 weeks BTC was able to build a positive correlation with the Dollar Index.
Forecast
Even though the long-term indicators are all already bullish and set for a trend change, we are still waiting for now. As in the 2015-2016 BTC bottom, the TOP formation of the dollar took almost 2 years and thus the bottom formation of BTC also took more like 1 year. This could happen this time as well, especially since we expect a strong recession in 2023.
Another low to $10,000 to $14,000 is still possible.
For all Hodler, it already offers itself to carry out first small long-term entries.
We will keep you updated!
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