Cryptocurrency analyst and trader Justin Bennett have said that the slightly higher unemployment rate in the U.S. should be bearish for the U.S. Dollar Index (DXY) and bullish for the crypto market.
During a recent interaction on Twitter, he said that Dogecoin's (CRYPTO: DOGE) performance shows bullish signs.
"If DOGE can reclaim this area, we will likely see that next leg up begin," he said.
Talking about Dogecoin's interpretation, he pointed to a bullish continuation pattern, but said making assumptions could be dangerous.
Here's the one thing I'll say about $DOGE...On Friday, Dogecoin slipped about 10% on the heels of news that Twitter owner Elon Musk has reportedly halted work on the social network's crypto wallet.I'd feel much better about this as a bullish continuation pattern if we didn't have that swing high on October 29th.
Not saying it's bearish. It just isn't an A+ bullish formation.
Assumptions can be dangerous. pic.twitter.com/OBQylOA6xM
— Justin Bennett (@JustinBennettFX) November 3, 2022
Also Read: Elon Musk Does It Again! Endorses Dogecoin, Says He'll Keep Buying The Meme Coin
Earlier this week, following Musk's completion of the Twitter deal, the meme coin spiked 150% in value, which was the highest since April.
The Dogecoin market became upbeat, with Musk discussing the possibility of using DOGE as a payment method.
Bennett further explained how DXY levels would affect crypto assets like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH).
"I can't stress enough how significant 109.30 will be for the DXY next week. The confluence is massive, 2022 trend line, descending channel support, and key monthly level. A close below = extended crypto rally. Bounce aggressively = crypto pullback," he tweeted.
A significant drop from the $DXY following higher-than-forecast unemployment.At the time of writing, Dogecoin was trading at $0.129, climbing 21% over the last seven days.A daily close below 111.80 would be bearish going into next week (bullish for #crypto).
Let's see. pic.twitter.com/GifLKkEhZ4
— Justin Bennett (@JustinBennettFX) November 4, 2022
Photo via Shutterstock.
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