In recent discussions surrounding Bitcoin (BTC) and its potential future price trajectory, crypto-enthusiasts and analysts alike are finding new correlations to dissect. Will Bitcoin reduce to the low of $20k before the year runs out?
Some crypto enthusiasts are drawing attention to the widely acknowledged inverse correlation between Bitcoin and the DXY (US Dollar Index).
An expert notes, “Most are aware of the strong historic BTC-DXY inverse correlation. DXY is a USD index against a basket of currencies which has a EURUSD weighting of around 58%. So the BTC-EURUSD correlation should also be relatively high.”
Some experts believe that there’s a something about the BTC-EURUSD correlation in the period following the pandemic and the last Bitcoin halving. Can we say that the “post-pandemic (post-halving) EURUSD pair has led BTC in both the bullish and bearish direction by anywhere from a month to a full year?”
This pattern, if it continues to persist, might spell some bearish tendencies for Bitcoin. Probably, if this relationship continues to hold, BTC should break down towards the BTFP low of $20k.
This statement is a significant one, indicating a potential substantial drop from its current position, all based on the movement patterns of the EURUSD.
