BlockBeats News: On July 2nd, Coindesk analyst Omkar Godbole stated that Bitcoin bulls are looking forward to the continued weakening of the US dollar injecting upward momentum into the cryptocurrency market. However, technical charts show the need to be wary of historical reversal signals - the weekly trend of the US dollar index is about to form a "death cross," a traditional bearish pattern that has repeatedly become a temporary bottom sign for the US dollar since 2009.
Omkar Godbole stated that although the terrifying form of this name is often seen as a long-term bearish signal, historical data shows that it is often a "bear trap" - since 2009, the four appearances of this form have all marked a bottom of the US dollar and a trend reversal (as shown by the vertical line in the chart). The most recent occurrence was in January 2021, when the US dollar index bottomed out around 90 and continued to rise, eventually reaching a high above 114 in September 2022. It should be noted that price patterns may not always develop as expected, and the impending death cross may not necessarily trap bears again. But understanding this historical pattern can help traders manage their positions more effectively.
