Crypto analyst Jamie Coutts said the US Dollar Index (DXY) breakdown could hint at Bitcoin’s (BTC) upcoming rally.
In a new interview with the Less Less Noise More Signal YouTube channel, Coutts shares a chart showing the prices of Bitcoin overlaid with a massive down move of at least 2.5% or more in DXY.
DXY measures the strength of USD against other major foreign currency baskets weighted by volume, and is often inversely proportional to risk assets like Bitcoin.
According to Coutts, many of the big downward movements in DXY coincides with the beginning of the BTC rally, as happened in late March.
“I’m just showing the Bitcoin chart and when these happen, this is the yellow icon. So, in a set of 8, I saw this play after 90 days.
So, if this unfolds and the delay between financial position, liquidity and asset prices unfolds, we actually consider it a strong month for Bitcoin and the best retest ever. ”
Source: Jamie Coutts/YouTube
At the time of writing, Bitcoin is trading at $85,138, 21% below the all-time high.
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