US Dollar on the verge of losing 12 year long trendline...

in GEMS5 months ago

The US dollar is on the verge of losing a 12 year trendline put in place during the Great Recession

Since bottoming in 2008, the dollar has been in an ever rising channel.

With higher lows and higher highs all the way over the past 12 years.

All that may be coming to an end though with the dollar currently sitting on that trendline as I type.

Check that out:

(Source: https://twitter.com/scottmelker/status/1290370302145441793)

What the dollar does from here may greatly impact what bitcoin does from here.

The single most important chart in bitcoin investing?

While all the post halving charts and stock to flow charts are very interesting and possibly very useful, the above chart may be the single most important chart in bitcoin investing.

Why do I say that?

I say that because bitcoin has been strongly inversely correlated to the US dollar ever since the March crash.

In fact, it's been more inversely correlated to the dollar than even gold:

(Source: https://hive.blog/hive-167922/@jrcornel/bitcoin-is-working-better-than-gold-as-a-hedge-against-a-depreciating-dollar)

And that is saying something considering gold has long been considered the "gold standard" for inflation insurance.

Based on the most recent data, bitcoin is currently better inflation insurance than gold is.

What happens if the dollar loses that trendline?

There is no guarantees that the dollar will indeed lose that trendline posted above, but there is a very strong chance that it will.

With a fresh round of stimulus on the way that will likely be somewhere between $1 trillion and $3 trillion, there is a very good chance that the dollar will continue to weaken.

With the money supply increasing and the economy showing no signs of getting better any time soon, the path of least resistance continues to be down for the dollar.

When it breaks that lower bound, the rate of decline will likely accelerate in the near term.

If and when the dollar index breaks below 80, it could be the watershed moment many in bitcoin have been waiting for.

That is sort of a line in the sand that many point to as a point where the dollar will start to lose its strangle hold on reserve currency status and people will seriously start to look at alternatives.

Enter Bitcoin.

Stay informed my friends.

-Doc

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Thanks for this information .. in fact the EUR / USD exchange rate is growing

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