DXY Crash: Why Isn’t Crypto Skyrocketing? Shiba Inu (SHIB) Finally Reaches Major Resistance, Is Bitcoin (BTC) Forming Double Top Pattern?

As a seasoned crypto investor with a decade of experience under my belt, I’ve witnessed countless market cycles and learned to read between the lines. Historically, the correlation between the U.S cryptocurrency market performance and the DXY has been undeniable – a declining dollar usually meant a bull run for Bitcoin and altcoins. However, recent events have made me question the status quo.


Historically, it’s been observed that the performance of the U.S. cryptocurrency market and the U.S. Dollar Index (DXY) have shown a strong negative correlation, meaning that when Bitcoin and other cryptocurrencies rise in value, often it follows a decrease in the DXY. This link makes sense as investors tend to move towards alternative assets like cryptocurrency when the value of the dollar decreases.

DXY Crash: Why Isn't Crypto Skyrocketing? Shiba Inu (SHIB) Finally Reaches Major Resistance, Is Bitcoin (BTC) Forming Double Top Pattern?

As a researcher, I’ve noticed an intriguing deviation from the usual market trends. The drastic decrease in the DXY, which has now plunged to record lows, seems to be setting the stage for a substantial surge in Bitcoin and the broader cryptocurrency market.

“The constantly evolving characteristics of the cryptocurrency market might explain this disconnection. As it matures, it becomes more intricate, with factors beyond just the DXY affecting its movements. Factors like regulatory changes, shifting market sentiments, and macroeconomic uncertainties significantly influence today’s cryptocurrency values.”

The cautious attitude that has been prevalent on the market lately may also be a contributing factor. The market’s recent volatile regulatory actions and persistent worries about the stability of the global economy may make investors wary of investing in riskier assets like cryptocurrencies. The usual excitement that a declining DXY would have generated may be tempered by this cautious approach.

Shiba Inu finally hits resistance

As a crypto investor, I’ve noticed that Shiba Inu (SHIB) has reached a critical point – the 26-day Exponential Moving Average (EMA). This level serves as a significant hurdle that traders are closely monitoring. Overcoming this barrier could help SHIB continue its upward trend and potentially open the door for more substantial future profits.

Reaching beyond the significant price barrier at $0.000014, which previously acted as a strong foundation, propelled Shiba Inu’s latest surge. This breakthrough has brought us closer to encountering this resistance level. The overcoming of the crucial $0.000014 mark has sparked optimism among traders and Shiba Inu investors, suggesting that the cryptocurrency might be poised for further upward momentum.

Nonetheless, the 26 Exponential Moving Average (EMA) serves as a notable barrier. Historically, this moving average has shown an impressive knack for forecasting trend continuations or reversals. If Shiba Inu (SHIB) manages to surpass this resistance, it could initiate a prolonged uptrend. Conversely, if SHIB fails to reach this level, there might be a pullback or consolidation, potentially subjecting SHIB to additional downward pressure.

Due to a surge in trading activity and renewed enthusiasm from big crypto players, feelings about Shiba Inu in the market are generally hopeful but cautious. If the recent breakthrough of the 26 EMA is successful, it could attract more buyers, potentially pushing prices even higher. However, the current resistance level might also lead to a temporary halt in the rally as it could serve as a point of rejection. Therefore, traders are advised to exercise carefulness.

Is Bitcoin topping out?

It’s possible that Bitcoin could soon create a local double top formation, a technical chart pattern often seen as a potential signal of a shift in market direction from bullish to bearish. This pattern is commonly read by traders as a cautionary flag, implying that the current upward trend might be nearing its end, and a price correction at present levels could follow suit.

When an asset’s value reaches a specific point, it tends to dip then rebound up to the same level, only to drop again; this repeated pattern is called a “double top.” This occurs when two comparable peaks or high points are formed, suggesting that the market has struggled to surmount a notable resistance barrier. Lately, Bitcoin at the $62,000 price point seems to be displaying signs of this pattern, as it has previously served as resistance multiple times. The emergence of this potential double top formation is causing concern among Bitcoin supporters, as it might indicate that there could be insufficient buying energy to push the price further upwards.

It would be wise for investors to stay vigilant and closely monitor price movements. If the price drops below where the two highest points converge (the neckline), it could trigger more selling, potentially signaling the formation of a double top pattern. However, at this stage, we can’t definitively say that a double top has formed yet, despite the market reacting as anticipated.

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2024-08-22 19:00