- Glassnode’s Negentropic co-founders boldly predict a Bitcoin surge, attributing it to an impending DXY downturn.
- The DXY, an essential gauge of the US dollar’s potency compared to a selection of key global currencies, has garnered considerable interest among traders.
- Happel and Allemann’s meticulous analysis reveals a distinctive three-wave pattern within the DXY, conforming to the Elliott Wave theory.
In a bold prognostication, the co-founders of the renowned crypto analytics firm Glassnode have set their sights on a monumental Bitcoin bull run. Jan Happel and Yann Allemann, known by their shared Negentropic moniker on the X social media platform, are convinced that the US Dollar Index (DXY) is on the cusp of a significant downturn, poised to ignite this anticipated surge in Bitcoin’s value.
The DXY, a pivotal gauge of the US dollar’s strength against a basket of six major global currencies, has captured the attention of traders worldwide. A weakened DXY signals a preference for risk assets such as cryptocurrencies and stocks over the US dollar.
Happel and Allemann meticulously dissected their data, revealing a distinctive three-wave pattern within the DXY, identified as the A-B-C wave. Their forecast suggests that the DXY will plummet below the pivotal 100 mark before the year’s end, culminating in the completion of the C wave correction at a staggering 89.34 level in the first half of the following year.
The co-founders of Glassnode predict an unprecedented surge in the iShares Russell 2000 ETF, which comprises small-cap stocks, as the DXY gradually declines. Previously, Happel and Allemann had observed the strengthening of the DXY, a trend exerting downward pressure on the value of Bitcoin.
Emphasizing the necessity for a DXY cooldown and its reevaluation to support BTC’s resurgence, they noted that augmented market liquidity traditionally favors Bitcoin in the long run, as investors seek alternative assets as a hedge against sluggish economic growth.
The traders highlighted macro expert Henrik Zeberg’s prediction that the DXY would peak around 106 before a correction.
Happel and Allemann echoed Zeberg’s sentiments, speculating that the impending reversal in DXY’s fortunes might catalyze the imminent rally in BTC. They posited that the protracted correction in Bitcoin’s value since April 2023 may finally be drawing to a close.
As of writing, Bitcoin is trading at $26,962, indicating a slight 0.26% decline in the last 24 hours. Investors eagerly anticipate whether the forecasts of Glassnode’s co-founders would materialize, potentially ushering in an exhilarating upswing in Bitcoin’s trajectory.
