Potential for a Pull-back as it Correlates with DXY
If you've seen my other posts about this - Bitcoin has clear negative correlation with DXY.
You could pull up the Correlation Coefficient indicator and make an argument that it correlates positively just as often as it does negatively, but when you compare the charts with each other, nearly every peak corresponds with a valley vs. the other and vice versa. They are typically offset by some period of time if not at the same time.
Also, try setting CC length to 35 and it provides a more clear picture of its long-term correlation.
Presently, Bitcoin looks like an inverse head and shoulders re-testing its neckline. Meanwhile, DXY looks like a head and shoulders with a pullback that hasn't quite reached the highs of its right shoulder.
Also, each shoulder and head of both head and shoulders have eventually corresponded with each other, in opposite directions, and Bitcoin has yet to have made a pullback.
However, it may skip the pullback altogether should DXY continue down and move back below ~98-101.
Or, DXY could instead move up above ~105-106 leading to pattern failure on both, and a strong uptrend on DXY / strong downtrend on BTC.
Let's see what happens next!
Please see my related posts below in the links to related ideas.
Thanks for reading!
You could pull up the Correlation Coefficient indicator and make an argument that it correlates positively just as often as it does negatively, but when you compare the charts with each other, nearly every peak corresponds with a valley vs. the other and vice versa. They are typically offset by some period of time if not at the same time.
Also, try setting CC length to 35 and it provides a more clear picture of its long-term correlation.
Presently, Bitcoin looks like an inverse head and shoulders re-testing its neckline. Meanwhile, DXY looks like a head and shoulders with a pullback that hasn't quite reached the highs of its right shoulder.
Also, each shoulder and head of both head and shoulders have eventually corresponded with each other, in opposite directions, and Bitcoin has yet to have made a pullback.
However, it may skip the pullback altogether should DXY continue down and move back below ~98-101.
Or, DXY could instead move up above ~105-106 leading to pattern failure on both, and a strong uptrend on DXY / strong downtrend on BTC.
Let's see what happens next!
Please see my related posts below in the links to related ideas.
Thanks for reading!
