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USDX Breaching the Next Support Level Will Lead to a BTC Rally

Published 05/10/2023, 01:59 AM
Updated 05/10/2023, 02:00 AM
© Reuters.  USDX Breaching the Next Support Level Will Lead to a BTC Rally

  • The crypto trader and analyst Jason Pizzino discussed the current altcoin market bloodbath in his latest video.
  • According to him, the market will experience another pullback in the short-term before rallying.
  • Pizzino predicted that the USDX breaking below the current support level will result in BTC pumping.

The crypto trader and analyst Jason Pizzino uploaded his latest technical analysis for Bitcoin (BTC) to his YouTube channel this morning. In the video, he shared that altcoins are currently in a short-term bloodbath, and stated that this brief bearish period is needed before the market can enter into the next bull run.

The trader also brought up the fact that the crypto fear and greed index had attempted to break a key resistance level at around 80. Since then, the technical indicator has retraced slightly. Nevertheless, Pizzino predicted that another pullback will occur to stabilize market sentiment, which is currently in extreme greed territory.

US Dollar Index daily chart (Source: TradingView)

He also included an analysis of the U.S. Dollar Index (USDX), and mentioned that it is currently resting on a key support level at 100.2. A weakening dollar is favorable for the entire crypto market and, as a result, Pizzino predicts that a break below this support line will result in BTC’s price climbing in the medium-to-long term, as well as altcoins following suit thereafter.

At press time, CoinMarketCap indicated that BTC was trading at $27,580.49 after a 0.57% loss over the previous 24 hours. Meanwhile, USDX was able to print a small 0.25% gain during the same period.

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Technical indicators on USDX’s daily chart had suggested that the index was in a medium-term bearish cycle, as the 9-day EMA line was trading below the 20-day EMA line. The daily RSI, however, had recently triggered a short-term bullish flag, with the daily RSI line crossing above the daily RSI SMA line in the past 48 hours.

This RSI technical flag suggests that BTC’s price will continue to fall in the next 24-48 hours. On the other hand, the USDX edging closer to the aforementioned support level will have an inverse effect on BTC’s price, causing it to climb to $28,700 in the following days.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

The post USDX Breaching the Next Support Level Will Lead to a BTC Rally appeared first on Coin Edition.

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