- This is great news for the stock market and crypto, because it looks like the DXY index has reached its destination at the top of the ascending parallel channel on the monthly chart.
- The end of 2022 and 2023 could be very bullish for the stock and crypto markets! Maybe this is the last time we see Bitcoin below 20 000 USD.
- 2% inflation is on the table, we had a massive selloff in certain stocks, and they simply cannot fall in a straight line!
- If we take a look at the RSI indicator, we are in overbought territory. It pretty much screams for a correction. Then we can make a final uptrend and print a bearish divergence on the 5th wave.
- A previous swing high from 2001 is definitely a strong resistance and I believe we will take stop losses above this high before a huge downtrend will be in-play. But not now. It could happen in 2025.
- According to my Elliott Wave analysis, I am missing a final impulse wave to the upside, so do not celebrate too much yet. For now, we are ready for an ABC correction to the downside on this chart.
- As you can see, we hit the 1.618 FIB extension measured from wave 1 to wave 2. Extremely strong resistance indeed!
- Look at my ideas about Bitcoin and the SPX 500 in the related section down below.
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