A “major decline” is on the way for the US dollar index, a top analyst says. He then updated the outlook for Binance Coin (BNB). In this digital currency post, you will read about the possible decline of the US dollar index.
A popular cryptocurrency trader says the US Dollar Index (DXY) is on the verge of a sharp decline after a months-long rally.
Anonymous analyst Bluntz tells his 224,800 followers on social media platform X (formerly Twitter) that DXY may resume its downtrend after completing a major Elliott Wave Theory pattern.
DXY is a measure of the value of the US dollar against a basket of six major currencies. Traders are keeping a close eye on the DXY. Because a weak indicator shows that investors prefer risk assets such as stocks and digital currencies instead of the dollar.
“I think the DXY is probably on the verge of a rebound and a continuation of the big decline. An ABC move to correct the apparently impulsive decline of the final quarter of 2022 is likely to be close. You just need to check those ranges which may take up to a month. “I think it’s all about the dollar again.”
An ABC correction, which is part of the Elliott wave theory, is a three-wave movement in the opposite direction of the trend. In this case, Blunts thinks the DXY’s strength since July has been a bullish correction in its long-term downtrend. The trader’s chart seems to indicate that the DXY will decline to 95 by early 2024.
Bluntz’s DXY call appears to match his earlier prediction. This means that Bitcoin (BTC) will soon form a bearish ABC correction pattern. And then it resumes the upward trend.
The trader also warns of a “brutal” fall in Binance Coin (BNB). According to him, it is about to lose key support with a retest of the $205 level. He previously predicted that BNB would fall to $192.
BNB is trading at $211 at the time of writing, up 2.8% in the last 24 hours.