BTC/USD, BTC.D (Bitcoin Dominance), DXY (US Dollar Index): Technical Outlook, Edition #34 (27/06/21)

Weekend Spotlight ft. $DXY, BTC/USD, BTC.D. Following on from our discussion of USD strength, let's walk through some asset charts that may feel pain in the coming week's trading session

Early bird gets the worm! Prepare for next week's trading session with our Sunday Night Round-Up 

Bitcoin approaches some key resistance as it tries to flip the H4 20 EMA (GREEN, Exponential Moving Average) into support once more around USD 33K. 

Bitcoin, BTC/USD - 4 Hour (H4)

A bullish breakout accompanied by volume on the re-test could be the fuel our bulls require to push past USD 35K. 
This move would see BTC/USD flip the D1 20 EMA (GREEN) into support and is critical in establishing the beginnings of an upward reversal. 

Bitcoin, BTC/USD - Daily (D1)

Conversely, failing to climb back above USD 35K would only be delaying the inevitable as bears eye off a daily close below USD 31K as the next step down to penetrating the 20's. 

Bitcoin Dominance, BTC.D - Daily (D1)

Bitcoin Dominance is still looking very bullish, and altcoins may be breaking down to keep Bitcoin afloat. 

Avoid big altcoin trades until we see signs that the cryptocurrency market cap has an appetite leaving Bitcoin. 


Further, the $DXY (U.S Dollar Currency Strength Index) is also looking bullish as it tries to flip the D1 200 MA (BLUE, Moving Average) into support. 

The return of a strong dollar is bound to cause some shakiness in the markets and expect volatility to rise if the $DXY starts moving higher toward 93.00 points. 

U.S Dollar Currency Strength Index, $DXY - Daily (D1)

Q's Conclusion

More time is needed - consolidation and patience here are critical. 

As mentioned in earlier editions, a strong USD poses a serious threat to many asset classes. 

It may be wiser to let the $DXY lead the way rather than seeking exposure to unnecessary risks.

See you again for the next update.

- q

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