Justin Bennett: Strong USD Index Brings More Pain To Crypto Market
A prominent crypto market Justin Bennett has a market condition that would have to fulfill for him to turn bullish again on crypto market.
Bennett shared with his 94K Twitter followers that he is closely following on the US dollar index (DXY).
The DXY is used to measure the value of the dollar against a basket of six world currencies – Euro, Swiss Franc, Japanese Yen, Canadian dollar, British pound, and Swedish Krona.
According to Bennett a weak DXY it has a significant effect on the crypto markets.
“The DXY is one of the top reasons I’m not ready to pile back into cryptos yet.
It’s no coincidence that Bitcoin topped out at $69,000 on the day the USD started its rally on November 10th.
Now the US dollar is pressuring resistance ahead of Wednesday’s FOMC [meeting]…”
The $DXY is one of the top reasons I'm not ready to pile back into #cryptos yet.
It's no coincidence that #Bitcoin topped out at $69,000 on the day the USD started its rally on November 10th.
According to the trader, for crypto markets to have a better chance at starting a new bull run, the DXY should slip below 95.80 level. Currently, DXY is sitting at 96.40 level.
Bennett believes that with strong DXY, it’s likely that consolidation with some downward pressure will follow for the crypto market for the rest of the month. Also, Bitcoin could pull down Ethereum to less-than-ideal levels, he warns.
“Cryptos look like crap to start the week.
I still think we go sideways to lower throughout December, especially if the DXY breaks higher.
Sweeping the lows at $40,000 sounds reasonable but could cause structural damage to ETH.
Bottom line: Plan for more pain just in case.”
Cryptos look like crap to start the week.
I still think we go sideways to lower throughout December, especially if the $DXY breaks higher.
Sweeping the lows at $40k sounds reasonable but could cause structural damage to $ETH.
