Glassnode Co-Founders Predict Bitcoin Surge on Weakening Dollar

The co-founders of Glassnode, a cryptocurrency analytics firm, believe that the US Dollar Index (DXY) is poised for a decline, potentially igniting a significant bull run for Bitcoin (BTC).

They observe that the DXY, which measures the US dollar against major currencies, has likely peaked, signaling a potential shift towards risk assets like stocks and crypto over the dollar.

According to their analysis, the DXY appears to be forming an A-B-C wave pattern, with a projected drop below 100 by year-end and a C wave correction to 89.34 in the first half of the following year.

DXY Reaches Its Peak, Signals Possible End to Bitcoin Consolidation

Fireworks in #BTC and #Crypto are expected to begin for real below 100 on #DXY. For now, we seem to have top in in #DXY as expected – and consolidation in BTC since April has come to an end. A completely new… pic.twitter.com/5JmJfkFqoV

— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) September 29, 2023

Their chart also suggests that as the DXY falls, the iShares Russell 2000 ETF (comprising small-cap stocks) is expected to rise.

Previously, they noted that DXY’s strength was putting downward pressure on Bitcoin. They believe that Bitcoin’s consolidation since April is ending, and a new phase with potential record highs for BTC is on the horizon.

The traders also reference macro expert Henrik Zeberg’s forecast that the DXY will peak around 106 before a correction, and currently, the DXY is at 106.07.

They suggest that Zeberg’s predicted DXY reversal could drive the upcoming BTC rally, as the correction in Bitcoin’s performance since April 2023 appears to be concluding.

At the time of writing, Bitcoin is trading at $26,845, down 1.1% in the last 24 hours.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.