A popular crypto trader says that the US Dollar Index (DXY) is on the verge of a major dip after a multi-month rally.
Pseudonymous analyst Bluntz tells his 224,800 followers on the social media platform X that the DXY may resume a downward trend after completing a key Elliott Wave theory pattern.
The DXY is a measure of the value of the US dollar against a basket of six major currencies. Traders keep a close watch on the DXY as a weak index suggests that investors are favoring risk assets like stocks and crypto over the dollar.
Says Bluntz,
“I think DXY is probably close to topping out again and continuing a major decline. An ABC move correcting the clearly impulsive Q4 2022 decline is probably close to finishing. Just need to sweep those range highs which might take up to a month and then I think it’s all over again for the dollar.”
An ABC correction, which is part of the Elliott Wave theory, is a three-wave move in the opposite direction of the trend. In this case, Bluntz thinks the DXY’s strength since July was a correction upward in its longer-term downtrend. The trader’s chart appears to show the DXY declining to 95 by early 2024.
Bluntz’s DXY call appears to line up with his previous prediction that Bitcoin (BTC) would soon conclude an ABC corrective pattern to the downside and resume an upward trend.
The trader is also warning of a “savage” collapse for Binance Coin (BNB), which he says is on the verge of losing key support as it retests the $205 level. He previously predicted that BNB would dip toward $192.
BNB is trading for $211 at time of writing, up 2.8% in the past 24 hours.
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