A widely followed crypto analyst says Bitcoin (BTC) could race to new all-time highs (ATHs) with a boost from one key driver.
In a new strategy session, crypto analyst Jamie Coutts says tells According to its 10,200 followers on social media platform
“Bitcoin is pegged to the dollar.
Chart: BTC vs DXY (reverse).
Once DXY breaks 99.5-101, there is little support until the low 90s.
BTC would likely reach new all-time highs in that scenario.”
The DXY is currently to sit at 103.1, down 0.4% over the last day.
According to Coutts, that is the crypto king sensitive to “mid-cycle overheating,” which he said happened during the last two cycles.
However, the analyst says he expects the pullback this time to be as short and shallow as in 2016, unlike the deeper, more dramatic correction of March 2020.
“Mid-cycle overheating has been a hallmark of the last two Bitcoin cycles. This time it was no different. The positioning in the derivatives market was near madness at cycle peak levels. The question is whether this decline looks more like 2016 or 2019. I’m betting on the former.”
Bitcoin is trading at $40,800 at the time of writing, up 2.1% over the past 24 hours.
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Generated image: Midjourney