The US CPI rates came out beyond anyone’s expectations, with rates lowered from 4% to 3%. This was one of the bullish indicators for the crypto space, but unfortunately, Bitcoin and the other major cryptos were merely impacted. Moreover, the tokens experienced a slight pullback but stand strong above the major support. Nevertheless, a massive bullish signal has just flashed, that may lift the price beyond $35,000 in the next few weeks.
It is a known fact that Bitcoin and the DXY Index, which indicate the strength of the US Dollar, are inversely correlated. Whenever the DXY Index rises, it means the US dollar is becoming more robust, which is when BTC prices experience a significant pullback as liquidity flows back to the traditional markets. In the reverse case, the BTC price gains significant strength with a drop in the DXY Index levels.
In the recent update, the index dropped heavily to levels never seen in the last 15 months. Hence, a notable price rise may be expected in the coming days.
The DXY Index faced rejection from the resistance at 103 and plunged heavily. After maintaining a steep descending trend for more than 4 days, the levels now stand below 100 and have marked lows at 99.97. Besides, the BTC price is gaining significant momentum as it maintains a notable upswing. Moreover, the price is also flashing a huge possibility of rising beyond $31,000 in the coming days.
Additionally, the DXY’s RSI has dropped close to oversold levels, and insertion at these levels may certainly drag the index lower. This may build more confidence in the BTC price rally, which could rise beyond the interim targets of $32,000 in the coming week. Moreover, if the DXY Index remains consistent below the current levels at 100, then the possibility of a minor bull run emerges, raising the levels close to $40,000.
The upcoming week can be crucial for both the DXY Index and the Bitcoin (BTC) price.
Source: https://coinpedia.org/price-analysis/mega-bullish-signal-flashes-for-the-bitcoin-btc-price-40000-target-activated/