Analyst: “It Might Be Time For Risky Assets Like BTC To Rise”

Cryptocurrency analyst Jason Pizzino says the US dollar index (DXY) is showing signs that this year’s parabolic rally may be coming to an end. The analyst stated that this indicates that it may be time for risky assets such as Bitcoin (BTC) to rise.

Jason Pizzino told over 279K YouTube subscribers from the last strategy session that the crash in the index is not going to stop as DXY faces breaking a key support zone on the higher timeframe chart. Investors watch the index closely, as the weakening DXY shows that investors are leaving the US dollar to buy risky assets such as stocks or cryptocurrencies. The analyst stated the following in his assessment on the subject:

“DXY is at 104.506. So future candle closes below this level will be critical for the index. If there is a candle close below 104.5, the index will likely look much weaker. This will make DXY look much weaker.”

According to Pizzino, the US dollar may be ending its parabolic rally, similar to what happened in the early 2000s when DXY dropped from around 120 in 2001 to around 70 in 2007:

“It really crashed a little faster than I expected. We were watching the peak that emerged in the previous 20-year cycle. This happened during the tech boom of 2001 and the stock market crash that followed. But we all know from the past (2004, 2005, 2006, 2007) that DXY’s “It’s been good and strong years for real estate to fall. That’s what we expect this time around. Of course there will be some tremors. I’m not saying we’re going to see a drop of the same rate, but we have to be prepared to see the US dollar start to decline later in the cycle.”

The cryptocurrency analyst, who analyzed Bitcoin after the DXY analysis, said that he believes BTC could pull back to $16,700 before starting its next rise:

“What that means is a re-setup to try to break out of this $17,200 high and move towards our target above $17,600. So this is our second step, our multi-day closing zone where we want to see Bitcoin get stronger, and then it will find itself at 18k. It adjusts for moves above $600.”

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