Benjamin Cowen Looks Into A Factor That Could Keep BTC Bullish Long-Term

According to Benjamin Cowen, a top crypto market analyst and trader, the is an over looked driver that could send Bitcoin (BTC) soaring for a long time.

In recent video Cowen looks into the dollar index (DXY), which compares the US dollar against a basket of other major fiat currencies. In other words, a weak dollar often reflects to higher prices in many other assets.

According to the analyst a down trend for DXY could become a big catalyst for Bitcoin to keep appreciating against USD. DXY is could well begin a bearish trend as it gets rejected from its 100-week simple moving average (SMA), says Cowen.

“Ideally speaking, in order to really be the best conditions for Bitcoin, we’d like to see this keep coming on down. This would be the best condition for Bitcoin and here’s the crazy thing when you talk about the US dollar currency index… Look at the actual macro range.” 

According to the trader, DXY has been in a large descending channel for roughly 30 years. He points out that there is much more room at the bottom of the channel than the top, which could lead to weaker dollar and as a result higher prices for Bitcoin.

DXY has been on the rise during bigger part of Bitcoin’s existence, but still BTC has still managed to maintain a long-term bullish structure. Cowen plays with the idea what could happen if the DXY eventually entered a steeper downtrend.

“The dollar has more or less moved up during that time. It’s moved up, but there were a couple of key times when the dollar was moving down and that corresponded to Bitcoin bull markets.

Imagine what Bitcoin could do if the dollar ended up coming back down… I think that would be incredibly bullish for Bitcoin.”