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US Dollar – DXY made a strong reversal down at the end of 2022 into the beginning of 2023, which we see as a first leg A/I. At the same time, Bitcoin bounced and recovered in an impulsive fashion away from the lows, as it's in a negative correlation compared to US Dollar. Since then, we can see DXY in a larger, higher degree corrective recovery, ideally in an (A)-(B)-(C) flat correction within wave B/II that can be approaching the end soon. So, if we are on the right path and if DXY is about to face more weakness in the second part of 2023, then Bitcoin could easily stay in the uptrend, especially if we consider a slow corrective decline within the channel range.

What we want to say is that, once DXY completes its corrective rally within the downtrend, this is when Bitcoin may see a further rally, but for confirmation, we want to see a strong reversal on both pairs.

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