Bitcoin has finalized the consolidation around the top of descending wedge. The consolidation was expected – but now as $25.2k has been broken the rally seems to be able to move higher. We may however see a retest of the “neckline” at $24-$25k before bitcoin continues higher.
EW gives us, that we are in wave 3 for as long as we do not break below $24k in a convincing manner. Some may see the Cup-and-Handle pattern which sets a minimum target of $35.1k – which also happens to be 161% of wave 1. We believe this level will be reached fairly soon.
The top in DXY was in September 2022. Since then, the DXY has been in a downtrend, which is expected to take it to the 91-93 levels before a new uptrend sets in (one bearish for the economy and markets). No trend moves in a straight line and in this particular case, we expect an ABC pattern to develop down to 91-93.
We are currently in wave B which may take various shapes. As a – or as a ZigZag which may bounce it to 107-area before the bigger downtrend sets in. But for now, the move is down and coming weeks we expect 102 to be reached.
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