Real Vision Analyst Jamie Coutts Issues Bitcoin Warning Amid Strong Dollar Rally, Says Macro Backdrop Soured
Real Vision’s head crypto analyst Jamie Coutts says that the US dollar is on the verge of foiling the rally for Bitcoin ( BTC ) and digital assets.
While the long-term bullish structure is still intact, Coutts says that a strong dollar is threatening to derail BTC’s movement in the short term.
“The macro backdrop has soured. Dollar strength is not good for Bitcoin. Ann Funding rates hit 40% 2 days ago. My liquidity framework is sensitive to the short to medium-term changes in momentum. In the long term, the picture is Bullish; in the Short term, they suggest caution.”
Source: Jamie Coutts/XZooming in on the dollar index (DXY), which pits the USD against a basket of other major foreign currencies, Coutts says it’s trading just below a critical resistance level at 106 that wouldn’t bode well for BTC if it breaks.
“DXY is right at the resistance level. A break above here would not be good for risk assets.”
Source: Jamie Coutts/XOver the longer term, Coutts believes there is a strong relationship between Bitcoin and global liquidity, or the amount of money sloshing around in the world’s economy. The analyst says that regardless of shorter-term volatility, BTC should continue to run higher over the next year or two along with a rise in M2 money supply.
“Longer term, this is where I am at for this cycle; a 12-month forecast based on linear relationship with liquidity. But Bitcoin cycles are not linear. I think we go much higher than this.”
Source: Jamie Coutts/XAt time of writing, Bitcoin is trading at $91,350.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X , Facebook and Telegram
Surf The Daily Hodl Mix
Generated Image: DreamStudio
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Teen’s Memecoin Turns $462 into $1M for a Crypto Investor
SEC Delays Decision on Franklin Templeton’s Bitcoin and Ethereum Index ETF
Is Ethereum Poised for a Comeback? Analysts See Potential Amid Underperformance
Bitcoin is inches away from cracking all-time high against gold
If gold remains steady today, a single move from bitcoin to $98,500 would do it