With the high degree of correlation among financial assets, it is not a coincidence that Bitcoin (BTCUUSD), Nasdaq (NDX) and the U.S. Dollar Index (DXY) all are on Huge Pivot Zone, the behavior of which is more likely going to determine the trend for the next several months.
Bitcoin's Pivot Zone has been in effect since January 2021 and is just above the 0.382 Fibonacci retracement level. Nasdaq's has been in effect since May 2021 and is also just above the 0.382 Fib. DXY's has been in effect since May 2022 and is right on the 0.5 Fib.
All are on the opposite side of their 1W MA50 (blue trend-line) and their Cycle trend-line, indicating that it has been a while since the break-out hence the trend change from bearish to bullish (for Bitcoin and Nasdaq) and vice versa (for the DXY). The one with the biggest potential (downside) is the DXY as it is the only one having not touched the 1W MA200 (orange trend-line) yet. This should have a sizeable bullish impact on both Bitcoin and Nasdaq.
So are all three assets on those Pivot Zone at the same time by coincidence? Will a DXY break lead the other two? Feel free to let us know in the comments section below!
Please LIKE 👍, FOLLOW ✅, SHARE 🙌 and COMMENT ✍ if you enjoy this analysis!
