A widely followed crypto analyst says Bitcoin (BTC) could rush to new all-time highs (ATHs) with a boost from one key driver.
In a new strategy session, crypto analyst Jamie Coutts tells his 10,200 followers on the social media platform X that the top crypto asset by market cap will surge to record highs if the DXY (U.S. Dollar Index) begins a downtrend.
“Bitcoin is stuck with the Dollar.
Chart: BTC vs DXY (inverted).
Once the DXY breaks 99.5-101 there is little support until the low 90’s.
BTC would likely reach new all-time highs in that scenario.”
The DXY is currently sitting at 103.1, a 0.4% decrease during the last day.
According to Coutts, the crypto king is susceptible to “mid-cycle overheating,” which he says happened during its last two cycles.
However, the analyst says that this time around, he expects the pull-back to be as brief and shallow as it was in 2016 as opposed to the deeper, more dramatic correction of March 2020.
“Mid-cycle overheating has been a feature of the last two Bitcoin cycles. This time was no different. The positioning in the derivatives market was almost cycle-peak-level insanity. The question is whether this pullback is more like 2016 or 2019. My bet is on the former.”
Bitcoin is trading for $40,800 at time of writing, a 2.1% increase during the last 24 hours.
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Source: https://dailyhodl.com/2024/01/24/crypto-analyst-jamie-coutts-names-catalyst-that-could-send-bitcoin-to-new-all-time-highs/