Once again, BTC/DXY is giving clear signals for each movement and the story is becoming clearer.
The BTC/DXY chart continues to do what it usually does, which is to provide signals before the market reacts.
This time we see another very clean rejection right at the broken trendline.
This further reinforces the point that the last 2-3 weeks have almost been a distribution phase rather than an accumulation phase. You can see the price slightly bouncing up, testing the old rising trend area, creating a feeling as if it is preparing to recover, only to be pushed down again.
This is typical behavior of a market that is strongly offloading rather than preparing for an uptrend.
When BTC/DXY is continuously rejected like this, it shows that the USD is regaining strength, while $BTC cannot maintain its recovery momentum despite retesting the trendline multiple times.
