Almighty Dollar at an Inflection Point: Will it Crush Crypto?

• The DXY Dollar Currency Index has climbed to record highs since the inception of Bitcoin, potentially crippling crypto markets and other risk assets.
• A bearish crossover on the one-month chart could cause bearish momentum to strengthen, leading to a dramatic decline in the dollar index.
• If the MACD fails to confirm a bearish crossover and diverges upward instead, it could create further collapse across crypto and other assets.

The Almighty Dollar

The almighty dollar is at an important inflection point with its potential to affect the bull market in Bitcoin and other cryptocurrencies. The DXY Dollar Currency Index has climbed to record highs since Bitcoin’s debut, potentially crippling crypto markets and other risk assets due to its seemingly endless dominance of global reserve currency status.

Potential Bearish Crossover

If momentum continues to turn down in the DXY, it may lead to a bearish crossover on the one-month chart of MACD (Moving Average Convergence/Divergence). This could cause bearish momentum to strengthen, leading to a dramatic decline in the dollar index. Such events have been known as major catalysts for big swings in cryptocurrency prices.

Consequences Of Divergence

Inversely, if the MACD fails to confirm a bearish crossover and diverges upward instead, it could create further collapse across crypto and other assets. This would be especially damaging for Bitcoin & Ethereum due their close trading relationship with USD pairs being half of most cryptocurrency trading pairs.

Relief Rally Across Crypto Markets

The last few months have provided much needed relief across crypto markets thanks to a weakening US dollar. Bitcoin is up more than 40% year-to-date while many cryptocurrencies have posted several hundred percent rallies during this time period.

Preparing For What’s Next

As investors prepare for what’s next in crypto markets they should pay close attention towards any changes or crossovers that occur within DXY’s monthly MACD chart which can serve as major catalyst for swings across multiple asset classes including cryptocurrency markets