Analysts Predict Huge Rally in Digital Assets
Crypto analysts Jan Happel and Yann Allemann, known as Negentropic on social media, predict a massive rally in digital assets due to a weakening US dollar. They believe the dollar index (DXY) is nearing the end of a bounce and will soon decline, leading to a surge in crypto and other risk assets.
Elliot Wave Theory and DXY’s Second Wave
Using Elliot Wave Theory, which suggests price corrections happen in three major waves, the analysts say that DXY is about to finish its second wave, an upward impulse, before dropping to new lows. This decline will propel crypto and other risk assets upward.
Strong DXY Weakens Risk Assets, Weak DXY Strengthens Risk Assets
The analysts emphasize the correlation between DXY and risk assets, stating that a strong DXY hinders risk assets while a weak DXY boosts them. They believe the DXY’s peak in October 2023 marked the start of a decline that will drive risk assets, including crypto, to new highs.
Bitcoin’s Bullish Pattern and $120,000 Price Target
Happel and Allemann also analyzed Bitcoin’s (BTC) price pattern and predicted a parabolic move similar to previous bull markets. Using Fibonacci extensions, they forecast a $120,000 price tag for BTC around July 2024, significantly higher than most analysts’ current expectations.
Opinions expressed in this article are not investment advice. Investors should conduct their own research before making high-risk investments in Bitcoin, cryptocurrency, or digital assets.