According to pseudonymous analyst Bluntz, the US Dollar Index (DXY) is likely to experience a significant decline after a prolonged rally. Bluntz, who has a following of 224,800 on the social media platform X, suggests that the DXY is nearing the completion of a major Elliott Wave theory pattern, which indicates a potential reversal.
The DXY is a measurement of the US dollar’s value against a selection of six major currencies. Traders closely monitor the DXY as a weak index suggests that investors are favoring risk assets such as stocks and cryptocurrencies over the dollar.
Bluntz believes that the DXY’s recent strength since July was a temporary correction in its longer-term downtrend. He refers to this correction as an ABC move, which is part of the Elliott Wave theory. An ABC correction consists of a three-wave move that goes against the overall trend. In this case, Bluntz anticipates that the DXY will decline to around 95 by early 2024, as depicted in his chart.
Interestingly, Bluntz’s prediction for the DXY aligns with his previous forecast for Bitcoin (BTC). He accurately predicted that BTC would conclude an ABC corrective pattern to the downside and subsequently resume an upward trend. This suggests that Bluntz’s analysis may hold some credibility.
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Additionally, Bluntz issues a warning concerning Binance Coin (BNB). He suggests that BNB is approaching a critical support level and could soon experience a “savage” collapse. Bluntz had previously predicted a dip in the price of BNB towards $192, and it is currently trading at $211.
It is essential to note that these predictions are based on technical analysis and should not be considered as investment advice. Investors should conduct their own thorough research and exercise caution before making any investment decisions.
In conclusion, Bluntz, a popular crypto trader, anticipates a major decline in the US Dollar Index (DXY) after a multi-month rally. He believes that the DXY’s recent strength was a correction in its longer-term downtrend and that it will soon resume its decline. Bluntz’s analysis is consistent with his previous accurate prediction for Bitcoin (BTC). Additionally, he warns of a potential collapse for Binance Coin (BNB). However, readers should exercise caution and conduct their own research before making any investment decisions based on this information.
