Crypto strategist Kevin Svenson told his 113,500 Twitter followers that Bitcoin recently broke its lower support level, causing BTC to recover from its June 2022 low of around $17,600.
At the time of writing, BTC is changing hands at $20,010, which is constant for the day and remains below the support offered by analysts.
Svenson’s bearish view of Bitcoin comes as he believes the U.S. dollar index (DXY) is still in a strong uptrend.
In a newly launched strategy, the cryptocurrency analyst said DXY gas is still plentiful even after rising more than 15% this year.
“Looking at the US dollar index from the 4-hour chart, it seems that the upward momentum will not slow down anytime soon. So, if the US dollar index breaks out and moves even higher this time it could be bad for Bitcoin. That could send Bitcoin even lower ($18,600).”
Cryptocurrency traders closely follow the US dollar index. The sharp increase in DXY indicates that investors are selling risky assets such as Bitcoin and cryptocurrencies for safe reserves for the US dollar.
On Monday, DXY rose to 110.27 points, the highest level for the last time in June 2002.