STRONG confluence between Bitcoin and the Dollar

12 ก.ค. 2023

Over the last couple of weeks, we've been focusing on BTC and USD. This is due to that fact that they are both on the verge of large moves. Given their inverse correlation, it's useful to follow both together as an indication for how liquidity is affecting the markets.

On June 30, we pointed out the flow signal that appeared on the weekly and daily candles for Bitcoin. This is usually followed by a +30% move within 30 days.

This was followed a week later by a daily high tide signal, which indicated a slow down in price momentum often followed by a drop towards the next support area.

We did get a drop, but it was only -5.4%. Does this mean there's more upward pressure than is immediately visible? The monthly current is continuing its march upwards as it is now forming a higher high versus its last one in April. Plus we're still in bullish flow territory.



More interesting to me is the ebb signal on USD that appeared yesterday. And with the high tide signal a six weeks ago, this would be right on trend to send the dollar to its lustrum in the 97 area and Bitcoin way up.



I do find myself hesitating, though. Dollar down, bitcoin up in perfect unity to perfectly predictable levels... markets like to inflict max pain on participants. The dollar blasting higher would do that.

But I'll admit that by the looks of it, the dollar's got some bearish flavours working for it.