The US markets are closed, but strength seems to be propagating the Crypto markets. The US Dollar has been surging against many of its pairs, having begun to show weakness among the Canadian dollar amidst an attempt by Oil to gain a footing earlier this week in the mid 70’s, which was marked by the Oct 7 2021 low of day.
The DXY had been butting it’s head up against the 1.382 extension yesterday, Nov 24, amidst a daily volatility read that signals possible near term exhaustion, although Oil looks like it wants to continue lower after this recent bounce, with a target into the mid 60’s heading into the end of the year. The indices fought off the bears early in the week to regain it’s Friday Nov 19 opening price at the time of this writing.
The question now is, will Bitcoin maintain it’s strength off of the 55600 Support and work it’s way into the 60’s? or will the dollar remain strong and keep crypto from mounting it’s advance. Or has the dollar found a near term top at this 1.382 extension? GBP/USD & USD/JPY both look like they are getting ready to mount an attempt to regain some ground, while USD/CAD looks like it wants to rewind some of its newly found strength amidst Oil’s possible return to slippery slopes.
On the crypto side of things ETH, has been leading the way it seems, setting a daily higher low, while BTC printed a lower low, albeit with a lower momentum read on the rsi hinting at some possible bullish divergence. This can been seen in the ETH/BTC chart, which looks ready to mount an attack on the ring leader of the group, possibly ready to massively outperform the king of the cryptos BTC. Is this the beginning of the Christmas rally in cryptos? Time will tell.