One Indicator Is Likely To Determine Whether Bitcoin Stays in a Bear Market, Says Crypto Analyst Benjamin Cowen

One Indicator Is Likely To Determine Whether Bitcoin Stays in a Bear Market, Says Crypto Analyst Benjamin Cowen

Spread the love

Popular crypto analyst Benjamin Cowen thinks one indicator is likely to determine whether Bitcoin (BTC) stays in a bear market.

In a new strategy session, Cowen tells his 764,000 YouTube subscribers that Bitcoin has historically been inversely correlated with the US Dollar Index (DXY).

The DXY measures the value of the dollar against a basket of six foreign currencies.

Says Cowen,

“Now a lot of times, when you see the dollar going up, it’s sort of like a wrecking ball: it makes most other things go down. Generally, you could view it as people fleeing into the relative safety of the US dollar.”

Cowen says the Dollar Index has been in a general macro uptrend since 2008. He notes Bitcoin bear markets have tended to correlate with the Dollar Index’s sharp moves to the upside and vice versa.

“The general relationship, as we’ve discussed, is that as long as the dollar is going up, we would expect Bitcoin to more or less stay either in a bear market or the very early stages of its accumulation phase.”

Source: Benjamin Cowen/YouTube

Bitcoin is trading at $21,114.98 at time of writing. The top-ranked crypto asset by market cap is down more than 16% in the past five days. Meanwhile, the DXY is up around 2.3% this week.

I

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix

Check Latest News Headlines

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/JLStock/Nikelser Kate

Related News

billionaire-chamath-palihapitiya-calls-ftx-implosion-a-sophisticated-con-perpetrated-on-millions-of-people
consensys-says-it-does-not-sell-any-metamask-user-data,-plans-to-store-it-for-only-seven-days
iohk-executive-says-cardano-(ada)-and-crypto-in-the-dot-com-stage-of-development