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Analysts: The bearish trend of the US dollar index may be a short trap "

According to online reports, Coindesk analyst Omkar Godbole said that Bitcoin bulls are expecting the continued weakening of the US dollar to inject upward momentum into the cryptocurrency market, but the technical chart shows that we need to be wary of historical reversal signals-the weekly line of the US dollar index is about to form a death cross., this traditional bearish pattern has repeatedly become a symbol of the US dollar's phased bottom since 2009. Omkar Godbole said that while the terrifyingly named pattern is often seen as a long-term bearish signal, historical data shows it is often a short trap-four occurrences of the pattern since 2009 have marked a dollar bottom and a trend reversal (as shown in the chart's vertical line). The most recent one occurred in January 2021, when the US dollar index continued to rise after bottoming out around 90, and finally hit a high above 114 in September 2022. It should be noted that price patterns will not always develop as expected, and the imminent death cross may not trap bears again. But understanding this historical pattern can help traders manage positions more effectively.

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