Bitcoin price again registered one of the steepest bearish candles in the previous day after being rejected at $40,000. The price corrected more than 6% and still finding strong bullish support to recover from the losses. Despite the bearish trend, the price holds above the trend line manifesting its strength.
The strength of the USD, DXY Index is been a hot topic within the crypto space for quite a long time. And moreover, the index reaching the pivot levels has become the talk of the town as it approaches these levels after March 2020. It was the time when Bitcoin witnessed a severe crash of nearly 50%, dragging the price below $5000. The DXY which was sinking quickly rebounded and smashed the crucial 103 levels.
However, a devastating event is approaching for the BTC price which may dry up the global volumes and crypto prices for the next 12 to 24 months. Mainly because the DXY is approaching the same 103 levels again.
On the contrary, the DXY is expected to mirror the previous rallies which slashed the index below 90. And within a strong rejection of DXY, Bitcoin underwent a massive bull run of more than 250% to 400% each time. And hence if the index faces a rejection again, then another 200% to 250% jump in BTC price may be expected.
The BTC price rebounded more than 457% during the 2017 DXY rejection at 103 and 276% during the March 2020 rejection. And hence the current month’s close may be extremely crucial for both the USD and Bitcoin as anyone among them are on the verge to undergo a drastic massacre in the global markets. Additionally, if slashed down heavily, then both may take a couple of years to rebound and test the same levels.