Cryptocurrency expert Benjamin Cowen is urging bitcoin investors to track the US dollar index. In his opinion, the fall of DXY will mark the growth of bitcoin.
Benjamin Cowen explained on his YouTube channel that the growth of the dollar index negatively affects the bitcoin rate.
“Unfortunately, when DXY is in an uptrend, Bitcoin tends to be in a downtrend, especially if the DXY uptrend is very strong. Conversely, when DXY is in a downtrend, Bitcoin tends to parabola.”
When the DXY is in a strong uptrend, the traditional market as a whole is not in danger, according to Cowen. However, this positive factor does not apply to bitcoin holders. The analyst claims that Bitcoin investors should expect a “bearish trend” soon.
“We need to make sure that the trend in the Bitcoin market really turns bullish, and not just shows some of the fake manifestations when in fact Bitcoin is not rising. We will be able to see a real “bullish trend” – as soon as the dollar turns around and goes down. That’s exactly what we really need to track.”
As an example, Cowen cited the jumps in the value of bitcoin in 2017 and 2020. The analyst opined that perhaps the next reversal will be in 2023. Although investors are looking forward to a change in trend, it is too early to talk about a reversal, Cowen said.
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