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DXY bullish - Bitcoin bearish as gold holds up and silver drifts lower

Commentaries & Views

In mid-August, I wrote a piece that I took some heat for; in it, I suggested the DXY was showing strength following a false breakdown and reversal, and the next probable target for the index was approx. 105.5

Below is the daily DXY chart with the yellow rectangle at the 105 area. Note the successful retest following the upside breakout, too.

It seems to me that until DXY strength begins to wane again in this timeframe, metals will have a hard time engaging a sustainable upward move. That doesn’t mean the metals are going straight down. As I clearly showed over the last few pieces I’ve written, there are long side trade opportunities to be seized.

In no surprise to regular readers, as with gold, I am also a long-term Bitcoin bull. However, for the immediate future, BTC looks bearish to me for a ride down toward the 22k level following the big rejection at the 200-day MA. That said, I would not be short unless extremely vigilant and nimble; crypto participants know the volatility in BTC makes silver look like child’s play.

Thanks and good luck.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.