© Reuters. USDX breaching the next support level will send BTC higher
- Cryptocurrency trader and analyst Jason Pizzino discussed the current bloodbath in the cryptocurrency market in his latest video.
- According to him, the market will see another short-term decline before a rally.
- Pizzino predicted that USDX breaking below its current support level would cause an injection of BTC.
Cryptocurrency trader and analyst Jason Pizzino uploaded his latest technical analysis for (BTC) on his YouTube channel this morning. In the video, he shared that altcoins are currently in a short-term bloodbath and mentioned that such a short bearish period is needed before the market can enter the next bullish trend.
The trader also brought up the fact that the Crypto Fear and Greed Index tried to break a key resistance level around 80. Since then, the technical indicator has rebounded slightly. However, Pezzino expected another dip to stabilize market sentiment, which is currently in extreme greed territory.
US Dollar Index daily chart (Source: TradingView)
He also included a analysis of (USDX), and mentioned that it is currently resting at a key support level at 100.2. Dollar weakness is favorable for the entire crypto market, and as a result, Pizzino predicts that a break below this support line will lead to higher BTC prices in the medium to long term, as well as altcoins that follow suit thereafter.
At the time of publication, CoinMarketCap indicated that BTC was trading at $27,580.49 after losing 0.57% over the past 24 hours. Meanwhile, USDX managed to print a small gain of 0.25% over the same period.
Technical indicators in the daily chart of USDX indicated that the index was in a medium-term bearish cycle, with the 9-day EMA trading below the 20-day EMA. However, the daily chart’s RSI has recently shot a short-term bullish flag, with the daily RSI line crossing above the daily RSI SMA of the past 48 hours.
This RSI technical flag indicates that the Bitcoin price will continue to decline in the next 24-48 hours. On the other hand, USDX approaching the aforementioned support level will have the opposite effect on BTC price, leading it to rise to $28,700 in the following days.
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USDX breaching the next support level will show BTC rally first coin issuance.