📉 VOLATILITY DRIVER: How the Dollar Index (DXY) Affects the Price of BTC?
We are starting a new trading week! After philosophical debates about CBDC, it's time to return to the fundamental drivers of the market. The main one is the Dollar Index (DXY).
DXY shows the strength of the US dollar against a basket of other currencies. The golden rule: When DXY rises \rightarrow BTC usually falls (liquidity flows into the safe dollar). When DXY falls \rightarrow BTC rises.
📊 ANALYSIS OF DXY AND BTC:
DXY is currently in a strong resistance zone. This makes this week extremely important:
Scenario 1 (DXY Pulls Back \downarrow): DXY does not break resistance. The dollar weakens, liquidity returns to risk assets. \mathbf{BTC} \mathbf{will} \mathbf{start} \mathbf{rallying} \mathbf{this} \mathbf{week}.
Scenario 2 (DXY Breaks Through \uparrow): The dollar sharply strengthens against the backdrop of macro news. \mathbf{The} \mathbf{crypto} \mathbf{market} \mathbf{awaits} \mathbf{pressure} \mathbf{and} \mathbf{dump}.
🛑 CALENDAR OF NON-PANIC: Major Events of the Week
Keep an eye on this data, as it instantly affects DXY and, consequently, BTC:
Wednesday: Consumer Price Index (CPI). (Inflation is the main driver for FED and DXY).
Friday: Speeches from FED representatives. (Comments on rates directly affect the dollar).
🔥 YOUR FORECAST: Where will DXY go this week?
DOWN (Waiting for BTC to rise)
UP (Preparing for a dump)
Start the week with liquidity! Be ready for volatility on CPI data!
#Macro #DXY #BTC #CPI #FED #BSCreator