Prominent analyst Justin Bennett said he expects inflation to ease, but not before investors who own riskier assets see their portfolios rebound in value.
“I think we will see a final rally in risky assets in 2022 when inflation eases later this year.
It’s an unpopular opinion, but that makes it more likely.”
The analyst cited an image from the New York Fed Survey of Consumer Expectations.
“Inflation is just a meme, right?”
The source: Justin Bennett/Twitter
Next Bennett quote A recent Reuters article said consumer inflation expectations fell for the first time in 16 months. I said:
“It began…”.
The analyst also looks at how Bitcoin (BTC) is moving against the Dollar Index (DXY), an index that compares the USD to a basket of other currencies.
He provided a chart highlighting BTC highs versus DXY lows over the past 11 years and said:
“DXY is very important for BTC.”
The source: Justin Bennett/Twitter
Referring to the prospect of a “decreasing engulfing pattern,” which often signals prices are about to decline, Bennett said:
“DXY is consolidating after creating a bearish engulfing pattern in the first week of February.
Above 97.30 is bullish. Below 95.13 is bearish.
I want it to break 95.13 for better crypto performance. Short term target for BTC.”
The source: Justin Bennett/Twitter
The strategist concludes his analysis with a look at the November 2021 Bitcoin chart. He believes BTC is poised to break out of the year open at $46,200 and move back towards $50,000.
“The moment for BTC to break above the yearly open of 46,200 has arrived.”
The source: Justin Bennett/Twitter
At the time of writing, Bitcoin is trading at $43,460, down 1.62% in 24 hours.
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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