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All-time highs next? Bitcoin holds $62K as the dollar index tumbles to 3-week lows

Published 10/19/2021, 09:25 AM
Updated 10/19/2021, 11:00 AM
© Reuters.

The U.S. dollar index (DXY) could continue its slide in Q4, according to a classic technical setup known as a “rising wedge.” The greenback’s bearish prospects may boost Bitcoin’s (BTC) price to new all-time highs as it holds above $62,000.

Rising wedges are bearish reversal patterns that begin wide at the bottom but contract as the price increases. As a result, the trading range narrows, which makes the rally unconvincing. That typically prompts the price to break below the wedge’s support line and later fall by as much as the maximum distance between the pattern’s trendlines.

DXY daily price chart featuring rising wedge setup. Source: TradingView
BTC/USD daily price chart featuring ascending channel pattern. Source: TradingView

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