A prominent crypto trader known as Bluntz has shared insights with his substantial social media following regarding the US Dollar Index (DXY) and the fate of Binance Coin (BNB).
US Dollar Index Faces Potential Downturn
Bluntz, a pseudonymous analyst, has delivered a forecast to his audience of over 224,800 followers on X, a popular social media platform. He suggests that the US Dollar Index (DXY) could be on the cusp of a significant decline following a multi-month rally.
According to Bluntz, the DXY might be poised to continue its downward trajectory after completing a crucial pattern within the Elliott Wave theory. The Elliott Wave theory is a well-known technical analysis method used to forecast price movements in financial markets.
The DXY, which measures the US dollar’s value against a basket of six major currencies, is closely monitored by traders and investors. A weakening DXY typically indicates a preference for riskier assets like stocks and cryptocurrencies over the US dollar.
Bluntz shared his perspective, stating:
“I think DXY is probably close to topping out again and continuing a major decline. An ABC move correcting the clearly impulsive Q4 2022 decline is probably close to finishing. Just need to sweep those range highs which might take up to a month and then I think it’s all over again for the dollar.”
In the context of Elliott Wave theory, an ABC correction refers to a three-wave movement that goes against the prevailing trend. Bluntz suggests that the DXY’s strength since July was merely a correction within its longer-term downtrend. His chart indicates a potential decline of the DXY to around 95 by early 2024.
This prediction aligns with Bluntz’s earlier forecast, where he suggested that Bitcoin (BTC) would complete an ABC corrective pattern to the downside before resuming an upward trend.
Cautionary Note on Binance Coin (BNB)
In addition to his DXY analysis, Bluntz has sounded an alarm regarding Binance Coin (BNB). He believes that BNB is on the verge of losing critical support as it retests the $205 level. Earlier, he had predicted that BNB could dip towards the $192 range.
As of the time of writing, Binance Coin (BNB) is trading at $211, representing a 2.8% increase in the past 24 hours.
Bluntz’s insights highlight the intricate interplay between traditional financial markets, cryptocurrencies, and the sentiments of traders and investors as they navigate these dynamic landscapes.