Bitcoin Price May Plunge as US Dollar Strength is Increasing

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The index for USD has recently improved significantly. According to the projections of the forex exchange and some economists in the upcoming weeks, dollar prices are going to improve significantly. However, the proponents of Bitcoin are worried that it can spell bad news for their digital currency reserves.

Some market analysts believe that the forex difference can prove to be detrimental for the top coin. It is worth noting that several currency aggregators have issued a strong probability of the dollar gaining more traction for Q2 of the current year. Meanwhile, on-chain metrics postulate that Bitcoin has shown an inverse price proportion with green paperback since the start of the current year.

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USD Dollar Bull Flag Index

Bull Flag is a continuation of a bullish streak that has managed to remain upward despite getting out of the last bullish cycle. For green paper, financial analysts use US Dollar Index or DXY, to measure its strength and price projections for the upcoming week. The latest data postulates that the USD has been on a 21-month streak that recently reached its peak on April 7th.

Another important bullish signal for the USD is the flagpole that is indicated by a lateral cascading stream breaking out into a new exponential uptrend. Financial experts postulate that the streak is going to allow the dollar to recover from its recent crash and can continue until the USD reaches the peak of flagpole development. At present, the apex of the bull flag is projected to take DXY to 101.

Bitcoin and cryptocurrency market experts are worried about the appearance of bear flag development on the price projections charts for the flagship cryptocurrency. Bear flags are indicators of the upcoming Bitcoin crash when a price manages to keep developing within the ascending channel before plunging downwards towards the lowermost price line of the stream.

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Experts theorize that Bitcoin can start to inch towards $40k before an eventual crash towards $32k. MinePlex wallet co-founder, Alexander Mamasidikov claims that there is a chance that Bitcoin might be able to hold around $42.5K for a long time. It is worth noting that several major Bitcoin holders like MicroStrategy and Luna Foundation have proceeded to purchase massive amounts of the flagship crypto recently.

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