Crypto analyst Jason Pizzino believes the recent drop in Bitcoin and other digital assets is linked to the US dollar’s rise. He thinks this trend could actually be good news for crypto in the long run.
Dollar Strength and Crypto Weakness
Pizzino says the dollar’s recent breakout from its slump put pressure on Bitcoin, causing its price to drop. However, he’s watching the US Dollar Index (DXY) closely.
A Potential Turning Point
Pizzino sees a potential turning point for crypto if the DXY hits a specific resistance level. He believes that if the dollar starts to weaken again, it could trigger a major bull run for Bitcoin and other cryptocurrencies.
“If the DXY gets rejected around 101.8 to 102.3, it could bring on further upside for Bitcoin and cryptos,” Pizzino said. “This could really get the party going for assets, maybe even the stock market as we lead into the election.”
What to Watch
The DXY is currently hovering around 101.97, according to TradingView. Pizzino is urging traders to keep an eye on this level, as it could be a key indicator of the future direction of crypto markets.
