BTC and DXY Seesaw

Unless you’ve been living under a rock, you probably know what a seesaw is. Both ends do not go in the same direction but counter each other. When one goes up, the other goes down. What if I tell you, that there is a “counter-weight” to Bitcoin’s (BTC) price movement?

Have you heard of the DXY? In a sentence, the DXY is the value of the US dollar relative to a basket of foreign currencies. So as not to further confuse me and you, think of it as how strong the almighty dollar is compared to six other currencies.

Historically, Bitcoin’s movement is inverse to what the DXY is doing. Yes, they are the 2 kids hogging the seesaw at the playground. So, is this like a crystal ball to predict crypto’s price movement? Yes and No. Because like most indicators, these chart movements are lagging. They can go either way at any minute. You still need technical analysis and keep your ears open to crypto news. The worst thing you can do is to short BTC without realizing that the DXY is about to hit major resistance.

As always, do your own research and invest at your own risk. It is ok to be confused, but don’t be lazy.

To the moon.

P.S. for the lazy ones here is the link for DXY chart on Trading View. It is currently going down and BTC is going up.