US Dollar Confirms Bearish Continuation as Bitcoin Hits Record High

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Both the US dollar and Bitcoin enjoyed a period of strength at the beginning of 2021. But while the cryptocurrency continued its uptrend higher, led by a new wave of institutional adoption, the greenback endured a sharp pullback in the wake of unsupportive fundamentals. The US dollar index, which tracks the greenback’s strength against the strongest global foreign currencies, broke below a crucial upward sloping support that constituted an Ascending Channel on Tuesday. Technically, the move signaled a negative breakout in the direction of the dollar’s previous downward trend. It made it appears like a Bear Flag. In retrospect, Bear Flags are bearish continuation patterns, confirmed by an initial strong directional move lower, followed by a consolidation channel in an upwards direction. Traders typically look for prices to break more down with a length equal to the previous flagpole’s size. US dollar index breaks below its ascending channel pattern. Source:…

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