The crypto space is expected to be in dire straits as the top crypto, Bitcoin is currently switching above and below $19,000. The shaky environment could be due to the strengthening of the USD as the DXY index is surging high and marking a new 20-year high. Presently, the index has jumped above $113, making a new yearly ATH.
At a time when the DXY Index is marking new highs, the crypto space has been negatively affected. On the upside, the index is close to drop significantly near $112 or below, but it could soon rise above $114.
As per the above chart, the DXY index is assumed to drop as it did before in 2015-16. Here the DXY underwent a parabolic recovery from wave 1 to 3 after rebounding from wave 2. Further, the rally dropped to hit the 4 and later rebounded to wave 5. A similar trend is expected to repeat in recent times and may drop to $112 and later rise back beyond $114.
Hence, a slight uptick can be expected with bitcoin and the crypto space as a whole. But as the index rises, the crypto market may be different. Currently, BTC price is again declining towards the demand zone between $18,277 and $18,928. If the asset fails to rebound from these levels, a heavy bearish trend is likely to be observed in the price in the coming days.
