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Here’s How The DXY Index Could Impact The Crypto Space

5 Nov, 20223 min readOther
Here’s How The DXY Index Could Impact The Crypto Space

On Friday, i.e., November 4th, the US Department of Labor released the unemployment data, indicating an increase in the rate, which hit 3.7% for October. After the data was released, the US stock market and the crypto market heaved a sigh of relief as this could mean that the FED would not continue increasing the interest rates from here on out.

However, increased unemployment is definitely a bearish sign for the US Dollar Index (DXY), but what does this mean for the crypto space?

DXY and Crypto

Well-known crypto analyst Justin Bennett has the answer.

He informs 110,500 Twitter followers that the increase in US unemployment rates is a bearish sign for the DXY but is highly bullish for Crypto.

A significant drop from the $DXY following higher-than-forecast unemployment.A daily close below 111.80 would be bearish going into next week (bullish for #crypto).Let's see. — Justin Bennett (@JustinBennettFX) November 4, 2022

Next, the analyst considers the present chart and claims that the hourly DXY chart indicates a fakeout. Also, he says he is still holding on to his prediction of 111.80 for DXY, which will bring in a bearish trend.

The hourly $DXY chart shows a confirmed fakeout earlier in the session.Still clinging to 111.80 for now, though. — Justin Bennett (@JustinBennettFX) November 4, 2022

Justin Bennett further claims that the DXY value will affect the top cryptocurrencies like Bitcoin and Ethereum, and he claims 109.30 to be the critical level for DXY. This is because in the next week, if DXY closes below the said range, Crypto will see a bull run, and if DXY moves above 109.30, the crypto market will witness immense bearish pressure.

I can't stress enough how significant 109.30 will be for the $DXY next week. The confluence there is massive. 2022 trend line, descending channel support, and key monthly level.Close below = extended #crypto rallyBounce aggressively = crypto pullback$BTC $ETH — Justin Bennett (@JustinBennettFX) November 4, 2022

Dogecoin: What lies ahead?

The analyst also talks about the asset of the month- Dogecoin.

He says that if DOGE reclaims $0.13000, the currency will see new heights.

If $DOGE can reclaim this area, we will likely see that next leg up begin.#DOGE #dogecoin — Justin Bennett (@JustinBennettFX) November 4, 2022

Now, as Dogecoin has claimed the $0.13000 area and is trading at $0.1309 after a rise of 6.29% in the last 24hrs, it appears that DOGE will see some new heights soon.

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