Inverse Signals: Why Bitcoin Weakness Is Attributed To Dollar Strength

Bitcoin price is currently on the ropes, potentially about to lose support at around $56,000. But could the recent weakness in the cryptocurrency market be more a factor of a strong dollar? TD Sequential Triggers Anti-Correlated Signals On BTCUSD, DXY Weeks ago, we posed the question if or not the Dollar Currency Index making new highs in 2021 was a dangerous situation for Bitcoin. After more than $10,000 per coin was wiped off the price of BTC, the answer was a resounding yes. But much like the cryptocurrency uptrend in late 2020 and early 2021 came to an abrupt halt, even the dollar’s short-term destruction must at some point come to a full stop. Related Reading | 10 Bullish Monthly Bitcoin Price Charts To Start November The potential for a reversal is here, according to the TD Sequential – a market timing indicator created by Thomas Demark. The idea behind the tool is that after a specific sequence of candles is made, conditions are met for a reversal. Such conditions are typically indicated by a 9-setup, or a 13-countdown. However, the 8th candle before the 9 can also yield such results, and truly the tides can change at any point – the tool just highlights when that is most likely to occur. In the chart below, both Bitcoin and the DXY have opposing signals – making the probability for a reversal in each asset all the more likely. Inverse TD setups could spell reversal | Source: DXY on TradingView.com Bitco...