Dollar Index Falls Over 10% in First Half; Bitcoin Faces Sell-Off Risks
Technical Analysis Summary
- The dollar index (DXY) fell over 10% in the first half of the year, marking its worst performance since Q3 1991.
- This decline breached a 14-year ascending trendline and caused the MACD histogram to drop below zero, indicating increased bearish momentum.
- Analyst Dan Tapiero predicts the USD could drop another 10% or more in the next 12-24 months, which may benefit bitcoin.
Bitcoin (BTC) Sell-Off Risks
- BTC declined by 1% on Monday, moving lower from the upper boundary of a six-week bull flag consolidation.
- The 14-day stochastic indicator is nearing a downward cross below 80, suggesting a potential sell-off.
- If BTC fails to hold above the current consolidation range, it could drop below $100,000; however, a breakout above the upper boundary could lead to a rise towards $140,000.