Thursday, December 8, 2022
 

Crypto Analyst Suggests Indicator To Predict BTC’s Bearish Trend

  • Crypto analyst Benjamin Cowen suggests an indicator to predict if BTC will stay bearish.
  • Cowen illustrated how BTC has historically been inversely correlated to the USD index (DXY).
  • BTC is currently trading at over $21,000.

Renowned crypto analyst, Benjamin Cowen suggested an indicator that could predict if Bitcoin (BTC) will continue to stay in its current bear market.

In a recent video posted on his YouTube channel, Cowen described to his 764,000 subscribers how BTC has historically been inversely proportional to the USD index (DXY).

To the uninitiated, the USD index is a measure of the value of the US dollar in relation to a basket of foreign currencies composed of the US trading partners’ currencies. Cowen described,

Now a lot of times, when you see the dollar going up, it’s sort of like a wrecking ball: it makes most other things go down. Generally, you could view it as people fleeing into the relative safety of the US dollar.

However, Cowen stated the USD index has been in an overall macro uptrend since 2008. He added that in bear markets, Bitcoin tends to correlate with a sharp rise in the USD index, and vice versa.

With this, Cowen mentions that the general relationship is that as long as the USD rises, Bitcoin is expected to remain in a bear market or in the early stages of its accumulation phase.

Following the release of US inflation data, the crypto market’s flagship Bitcoin began to rise, forcing the $25,000 range higher, but currently BTC is changing hands at $21,123.26 (at the time of writing) which is down by more than 69.4% from its all-time high. Meanwhile, the DXY has surged for around 2.3% this week.

  • Crypto analyst Benjamin Cowen suggests an indicator to predict if BTC will stay bearish.
  • Cowen illustrated how BTC has historically been inversely correlated to the USD index (DXY).
  • BTC is currently trading at over $21,000.

Renowned crypto analyst, Benjamin Cowen suggested an indicator that could predict if Bitcoin (BTC) will continue to stay in its current bear market.

In a recent video posted on his YouTube channel, Cowen described to his 764,000 subscribers how BTC has historically been inversely proportional to the USD index (DXY).

To the uninitiated, the USD index is a measure of the value of the US dollar in relation to a basket of foreign currencies composed of the US trading partners’ currencies. Cowen described,

Now a lot of times, when you see the dollar going up, it’s sort of like a wrecking ball: it makes most other things go down. Generally, you could view it as people fleeing into the relative safety of the US dollar.

However, Cowen stated the USD index has been in an overall macro uptrend since 2008. He added that in bear markets, Bitcoin tends to correlate with a sharp rise in the USD index, and vice versa.

With this, Cowen mentions that the general relationship is that as long as the USD rises, Bitcoin is expected to remain in a bear market or in the early stages of its accumulation phase.

Following the release of US inflation data, the crypto market’s flagship Bitcoin began to rise, forcing the $25,000 range higher, but currently BTC is changing hands at $21,123.26 (at the time of writing) which is down by more than 69.4% from its all-time high. Meanwhile, the DXY has surged for around 2.3% this week.

 

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