Tuesday and Wednesday everything looked great. Bitcoin was about to and then did break out from the descending wedge. See this chart below:
Then it was rejected at $40K and fell back to $37K! What gives? The DXY chart is surging again, that is what gives! Yesterday, the markets were strong on the rumor of the so so rate hike of 50 bps. Today, Bitcoin markets are weak on the news of this rate hike of 50 bps:
We know the DXY and Bitcoin are inversely related. How will this strong dollar period we are in right now affect Bitcoin? See the next two charts. This first one is the DXY chart for today. After that is the Bitcoin chart. Obviously inversely related:
Tuesday, crypto zombie had a chart that looked bullish and it was at the time. Bolinger bands tightening, meant increased volatility ahead for Bitcoin. Yesterday, we thought it was for sure going to be a bullish break out. Here is the bolinger band chart showing future volatility: