In a new edition of his Cryptocademy newsletter, trader Justin Bennett breaks down BTC, ETH and the US Dollar Index (DXY) moving forward.
Says Bennett of BTC,
“BTC rallied into today’s FOMC, so the pullback on the 50 bps (basis points) hike was no surprise as late longs got flushed. BTC also retested the trend line support at $17,500 today, which is a level I mentioned in yesterday’s video. It’s going to take a close below that and $17,300 to open up lower levels. Alternatively, resistance for BTC comes in at $18,200 and $18,500.”
Looking at the second largest crypto by market cap, Ethereum, Bennett considers multiple options for the leading smart contract platform.
“ETH is down today after testing the $1,350 range highs for a second time. However, the $1,300 area (specifically $1,297) is still holding as support. It will take a daily close below that for Ethereum to turn bearish toward $1,235 and potentially lower. On the other hand, a daily close above $1,350 would open up the $1,420 area.”
Bennett also looks at the DXY, a measure of the strength of the US dollar against a basket of assets. For Bennett’s purposes, he looks at the DXY against a basket of crypto assets.
Generally speaking, a bearish DXY is bullish for crypto and vice versa.
After the FOMC meeting, Bennett says the DXY is lower today.
“DXY is lower today on a business-as-usual rate hike and press conference from Powell. However, it’s still holding above the 103.60 area for now, which is the location of a key horizontal level and the trend line from November 15th. DXY would have to close above 104.50 to re-expose 105.60 and below the 103.60 region to open up the 102 to 103 area.”
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