Big bullish pattern on US dollar index chart puts Bitcoin at risk of losing $30K
Cointelegraph
Published Jul 16, 2021 01:28PM ET
Updated Jul 18, 2021 03:40PM ET
Dollar traders have kept a close eye on a potentially bullish "inverse head-and-shoulders" pattern building in the U.S. dollar index (DXY) chart. Meanwhile, the smell of a stronger greenback is weakening Bitcoin's (BTC) upside case, especially as the flagship cryptocurrency struggles to break out of its current $30,000-35,000 trading range.
In detail, the inverse head-and-shoulders (IH&S) pattern forms after a downtrend. It contains three successive troughs, with the middle trough (head) being the deepest than the other two (shoulders). Ideally, the two shoulders are of equal height and width. All three troughs hang by a price ceiling known as a neckline that serves as resistance.
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Written By: Cointelegraph
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