A crypto analyst who continues to build a following with his timely Bitcoin calls is issuing an alert for BTC holders as the US dollar erupts to a level not seen in two decades.
Crypto strategist Kevin Svenson tells his 113,500 Twitter followers that Bitcoin recently broke below its diagonal support that has kept BTC afloat since the June 2022 lows of around $17,600.
“As of right now, it just looks like [bearish] continuation unless we were to bounce back above the trendline.”
At time of writing, BTC is changing hands for $20,010, flat on the day and still below the analyst’s diagonal support.
Svenson’s bearish view on Bitcoin comes as he believes the US dollar index (DXY), which tracks the value of the US dollar relative to a basket of fiat currencies, is still in a strong uptrend.
In a new strategy session, the crypto analyst says the DXY appears to have more gas left in its tank even after rising over 15% this year.
“Looking at the US dollar index from the four-hour chart, yeah we are sustaining these levels. We’re getting continued higher lows and higher highs, and it doesn’t seem the momentum is slowing down anytime soon. So if the US dollar index does break out on the daily [timeframe] once again, and sees another higher high on this run that could be bad for Bitcoin. That could cause Bitcoin on the daily [timeframe] to maybe even see lower lows ($18,600), at least from our recent low.”
Crypto traders keep a close watch on the US dollar index. A surging DXY suggests that investors are selling risk-on assets like Bitcoin and crypto and seeking the safe-haven status of the US dollar.
On Monday, the DXY rallied to 110.27 points, a level last touched by the index in June 2002.
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