Who else is looking at the dollar today?
I hope you are because the U.S. dollar index looks ready to extend a downtrend while Bitcoin (BTC/USD) is facing a possible reversal!
Check out their 1-hour and 4-hour charts:
U.S. Dollar Index (DXY): 1-hour
Don’t look now but the U.S. dollar index just turned lower from the 103.00 psychological handle!And why not? The area lines up with the 1-hour chart’s 100 SMA and a descending channel resistance that hasn’t been broken in three weeks.
Does this mean that the index will continue to trade lower?
Momentum traders can take advantage of the rejection at the resistance zone and short the index all the way to the previous support near 101.90 or even new monthly lows.
If you think that the dollar bears have done their worst, though, then you can also bet on USD recovering by placing long trades above the channel and SMAs that we spotted.
Bitcoin (BTC/USD): 4-hour
If you’re one of them Bitcoin HODLers then you better check out BTC/USD’s 4-hour chart!
We know that Bitcoin is having trouble making new highs above the $29,000 mark.But did you know that BTC/USD is forming a Head and Shoulders pattern on the 4-hour time frame!
A break below the $26,750 “neckline” opens the crypto to a drop to the $25,000 or $23,500 previous areas of interest.
Don’t discount another bounce though!
If there are enough buyers in the next trading sessions, then BTC/USD could trade inside a range instead with the “neckline” as support and the $28,000 highs as resistance.
What do you think? Are there enough sellers to drag the crypto to its previous lows?