Big bullish pattern on US dollar index chart puts Bitcoin at risk of losing $30K By Cointelegraph

Big bullish pattern on US dollar index chart puts Bitcoin at risk of losing $30K Dollar traders have kept a close eye on a potentially bullish “inverse head-and-shoulders” pattern building in the (DXY) chart. Meanwhile, the smell of a stronger greenback is weakening ‘s (BTC) upside case, especially as the flagship cryptocurrency struggles to break



Big bullish pattern on US dollar index chart puts Bitcoin at risk of losing $30K

Dollar traders have kept a close eye on a potentially bullish “inverse head-and-shoulders” pattern building in the (DXY) chart. Meanwhile, the smell of a stronger greenback is weakening ‘s (BTC) upside case, especially as the flagship cryptocurrency struggles to break out of its current $30,000-35,000 trading range.

In detail, the inverse head-and-shoulders (IH&S) pattern forms after a downtrend. It contains three successive troughs, with the middle trough (head) being the deepest than the other two (shoulders). Ideally, the two shoulders are of equal height and width. All three troughs hang by a price ceiling known as a neckline that serves as resistance.

U.S. dollar index’s inverse head and shoulder technical setup. Source: TradingView

Bitcoin dropped from $65K to $28.6K at one point in time. Source: TradingView