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.
“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.
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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