DXY Breakout of Cup & Handle Formation Target $120 + BTC Dump

12 Jul 2022

While the DXY is over extended, it's also very possible to continue higher to re-test the 120 levels which would coincide with another major leg down on BTC.

If the DXY pulls back here, we could see a short term Bitcoin rally (Bull Trap) along with the altcoins, and then another DXY pump and BTC drop.

But I think we could certainly see another rapid leg down with BTC here, triggering another round of stop losses and liquidations, fueling a retail capitulation.

My downward targets are $16,700 at the 300 weekly MA for Bitcoin.

Next major support is $12,500 at the 400 week SMA.

There is also an unfilled CME gap at around $9750 which would make sense as the Market Makers would likely push price down to break 10k and induce panic selling and the last retail capitulation move before putting in a final bottom.

This will likely play out over the coming months into the Fall before finally putting a bottom in Nov / December 2022.

- #BTC has around ~650 days until its next Halving in April 2024

- Historically, BTC has bottomed ~517-547 days prior to its Halvings

- If history repeats, BTC needs to "waste" 100-150 days before bottoming.

- So we should see bottom in NOV/DEC 2022

- And ATH OCT/NOV 2025

We shall see !

** Ignore the other indicators down below the chart for now. TV won't let me hide them w/out deleting.