Keep an eye on the DXY, BTC price, and interest rates as you track the markets and make informed investment decisions. My summary:
The first way to use the DXY is to watch for its lowest points.
This could be a good time to consider selling your Bitcoin or crypto. I showed these areas in an orange circle.
It's worth noting that there has often been a positive correlation between the DXY index and the price of Bitcoin. When the DXY falls, the price of Bitcoin has tended to go up in the past. This was especially evident during the bull markets of 2017-2018 and 2020-2021.
To identify the bottom of the Bitcoin market, consider the potential movements of the DXY index and interest rates. Stable rates and low inflation may indicate that the DXY and Bitcoin market are stabilizing.
It is expected that the period from 2023-2024 will be similar to 2019, with stable interest rates but potentially higher than in previous years. As the market adjusts to these rates, it is possible that the DXY index will fall naturally.
It is possible that the DXY index will see a final increase due to rate decisions and that Bitcoin will experience a minor correction (to around 12,000-14,000). However, it is impossible to predict the exact bottom of the market or potential black swan events (e.g., Greyscale).
A good strategy for this uncertain environment may be to use dollar-cost averaging (DCA) and regularly buy Bitcoin. This can help you mitigate risk and potentially take advantage of any market fluctuations.this twitter thread.