With the DXY hovering above support and Bitcoin consolidating below resistance, it seems a breakout isn’t far away.
So in today’s issue, we’ll discuss the relationship between the US dollar index (DXY) and BTC. We’ll look at its history and what could be shaping up for 2022 and beyond.
I’ll also provide you with an update on ETH, and why I think WEAPON is setting up perfectly for a big move this year.
Let’s get it!
US Dollar Index (DXY)
The DXY, which is the US dollar index, continues to be the lynchpin for risk assets.
As I’ve mentioned in recent weeks, we need to see a lower DXY for risk assets like cryptos to move significantly higher.
A DXY below 95.13 would be the first step, followed by taking out the 94.60 low. Do those two things, and I think we see cryptos move significantly higher in the coming weeks.
Alternatively, a move above 97.30 would negate the bearish outlook.
Bitcoin looks healthy after bouncing from $42,000 support this week. That’s a support area that stretches toward $40,000 that we’ve discussed for weeks.
Buyers need to take out $46,000 on a daily closing basis to confirm the bullish breakout and open up the $50,000 region. Just keep in mind that the yearly open is $46,200, so that’s going to play a critical role.
I continue to like Bitcoin higher as long as it’s above the $40,000 region.
Ethereum is attempting to break out from a descending channel that extends from the November highs. We’ve discussed this pattern several times in recent weeks.
You can see how the market carved out a false break/deviation in January. So it’s no surprise to see ETHUSDT trending in the opposite direction.
A convincing close above $3,120 would likely keep ETH trending higher. However, I still want to see buyers take out $3,280 to carve that first higher high to expose $3,600.
WEAPON is a play-to-earn token I first bought in December of last year just above $1. Today’s price of $2.15 represents a market cap of just over $21 million.
Everything about this project demands a higher price, in my opinion. The team is as solid as they come, they’re going to offer staking, the gameplay looks incredible, and they’re building an NFT generator called the “Degenerator”.
Not to mention the fact that they’re building out a Megaverse which is going to be like Steam only for blockchain games.
Furthermore, 3% of daily volume is being accrued for future stakers. That’s been the case since December 23rd and will be tacked onto the normal 2% of daily volume once staking launches.
At the moment, the team is just waiting for a Certik audit to finish up and for legal to give the green light. Once those two things are in order, staking is ready to launch. That audit is 85% complete, by the way.
The chart also looks bullish given the multi-month ascending triangle. The percentage objective of this pattern lines up with $20, or a $200 million market cap.
I think the WEAPON token has a ton of potential in 2022 for the reasons stated above. Prices of $20 and higher should not be ruled out. As always, this is not financial advice.