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Crypto analyst and trader Justin Bennett says that weakness in the US dollar can spark a new parabolic rally for Bitcoin (BTC)
The popular analyst tells his 85,000 followers that he has his eye on the US dollar index (DXY), which compares the USD to a basket of other major fiat currencies. A weaker dollar generally suggests investors are favoring other assets over the world’s reserve currency.
Bennett says the DXY is about to approach the bottom of an ascending channel. Should it fall through the bottom and begin a big downtrend, the analyst says the breakdown could be the catalyst to send crypto into a parabolic surge.
“What’s that? BTC is up as the DXY is tanking?
93.50 is critical. A close below that for the USD index kicks off the parabolic phase of the crypto bull market, in my opinion.”
Looking at Bitcoin in the short term, Bennett predicts BTC consolidating some more before finding a bottom around the $57,000 level. From there, the analyst suggests Bitcoin breaks out in early November and gets above $75,000 halfway through the month.
“BTC consolidation continues.
If the market can deviate from the September pullback (yellow) and breakout here, it’s back to $64,000. That would be the next big test for bulls.
When it comes to Ethereum, the crypto analyst says that the second biggest crypto by market cap is in the middle of a breakout that could see it clock as much as 362% worth of gains in the coming months from its current price of $4,324.
“ETH is breaking out again.
The weekly chart looks ready for $10,000 – $20,000 in the next few months.”