US Dollar Index (DXY) Plunge Pushes Bitcoin to $115,000 as Fed Rate-Cut Speculation Heats Up
Main Idea
The U.S. Dollar Index (DXY) dropped sharply due to weak jobs data and political turmoil, boosting Bitcoin's price to $115,000 as investors anticipated Federal Reserve rate cuts.
Key Points
1. The DXY fell to 98.50 after July nonfarm payrolls added only 73,000 jobs, below forecasts, and amid political instability, including the dismissal of the Bureau of Labor Statistics Commissioner.
2. Bitcoin rebounded to $114,916, approaching the 50-period EMA resistance at $115,672, with RSI recovering from oversold levels to a neutral 50.84, indicating improved momentum.
3. Technical analysis suggests a potential further decline in DXY to 97.50 if it fails to hold above 98.50, which could benefit Bitcoin and other cryptocurrencies.
4. The inverse correlation between Bitcoin and the DXY was evident, with a weaker dollar driving crypto market gains, including Ethereum and XRP.
5. Bitcoin's next resistance level is near $118,000, but failure to break above the EMA could keep it range-bound between $112,000 and $115,000.
Description
DXY fell to 98.50 after weak jobs data and political turmoil intensified Fed rate-cut expectations. Bitcoin rebounded to $115,000, approaching EMA resistance, with RSI recovery signaling improved momentum. Crypto markets strengthened as dollar weakness increased speculation of further monetary easing and Fed-driven liquidity support. The U.S. Dollar Index (DXY) is sliding hard, dropping to around 98.50 after a disastrous jobs report and a political shake-up in Washington have traders convinced t...
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