Death Cross on the Dollar Index (DXY); Wait for Bitcoin to jump?

In the one-day view of the dollar index (DXY), the formation of the intersection of death is clearly seen. Bitcoin, as an asset whose price is always measured against the dollar, could be greatly affected by this event.
To the report Bitcoinist, the idea of creating Bitcoin was based on countering fiat currencies and destructive monetary policies of central banks. For this reason, the main enemy of Bitcoin is considered to be the US dollar in many ways. In addition, most of the Bitcoin transactions in different markets are done against the US dollar.
When the dollar gains strength, Bitcoin weakens in terms of price, and the reverse is also true. Now, as the dollar index, which compares the value of the U.S. dollar against a basket of selected world currencies, is showing a prominent bearish sign that could lead to a decline in the value of the fiat currency in global markets.
Death and golden intersections are two famous bearish and bullish signs in technical analysis. A death cross is formed when the 50-day simple moving average (green line in the image) crosses the 200-day simple moving average (red line in the image) from up to down cut off The golden intersection is just the opposite of this and occurs when the 50-day simple moving average crosses the 200-day simple moving average. down to up cut off Both of these failures can be considered as a key sign of a change in the market trend.
Also read: What is the golden intersection and the intersection of death and how to recognize it?
The one we talked about first is the first death cross on the US dollar index after the formation of the golden cross on this chart in July 2021 (Tir 1400). Considering the chaotic conditions of the market, this technical event may not seem very important; But historical data suggests otherwise.

Since 2015, including the current intersection, there have been 6 death intersections on the dollar index. Three intersections occurred between 2015 and 2017 and two similar intersections occurred during 2020.
The price of Bitcoin has grown by an average of 359% after the formation of previous intersections on the dollar index. Three of these five cases, which have had the least bullish effect on the price of Bitcoin, have faced this digital currency with a growth of between 64 and 120 percent. Besides, before and after each of these jumps, the price has obviously experienced a lot of fluctuations.
Two more of these bearish intersections have led to a significant drop in the dollar index and a stunning rally in Bitcoin. One of them followed the 567% growth of Bitcoin in 2020 and the other followed a 935% price jump in 2017; An important and influential upward trend that made Bitcoin known around the world.