The dollar (DXY) is showing weakness, bullish signal?

26 Jun 2023 · 1 min

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In this market commentary, The Art Of Crypto explains that the US Dollar Index (DXY) is in a strong downtrend, approaching a technical "discount zone" between the 0.618 and 0.705 Fibonacci levels. The speaker emphasizes the well‑known inverse relationship between the US dollar and Bitcoin: when the dollar weakens, Bitcoin tends to rise, and vice‑versa. By highlighting the current DXY structure and the levels that market makers monitor, the video argues that the ongoing decline in the DXY will act as a catalyst for Bitcoin to move higher.

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Just another thing to confirm the theory behind Bitcoin is the fact that the DXY is currently heading lower. The reason for that is simple. The DXY is called the US dollar index. This is basically denoting the strength of the US dollar. Bitcoin is valued against the US dollar. It makes sense that if the USD goes up, Bitcoin goes down. USD go down, Bitcoin goes up. And at the moment, the DXY is in a pretty strong downtrend with clear market structure looking to make new lows at around 0.618 to 0.705 level. This is called a discount zone. So this premium discount is what the market makers look at. So essentially at the moment, the DXY seems to be heading down to the 618 and the 705. So as the DXY heads lower, that is going to provide the catalyst that Bitcoin needs to go even higher.