Bullish for Bitcoin, Bearish for the Dollar DXY Ahead? Analysis Company Reveals the Best Strategy!

***As investors expect critical US inflation data today in Bitcoin and altcoins, wondering when BTC will rise, Singapore-based crypto trading platform QCP Capital has revealed its expectations.

QCP Capital analysts stated that DXY is facing downside risk and as a result, BTC could rise.

It said that any positive news that could come from the macroeconomic front could trigger a sharp liquidation of long positions in DXY and increase downward pressure, leading to a decline in DXY.

It noted that a potential decline in DXY could boost risky assets like Bitcoin.

At this point, QCP Capital noted that the January US CPI data could serve as a catalyst for a significant decline in DXY and could bring an uptrend to BTC.

However, analysts pointed out that this situation may not immediately dispel the clouds of decision on Bitcoin. At this point, analysts particularly expressed that following institutional flows and buying downside protection could be the best strategy, especially for investors with long positions in Bitcoin and altcoins, as the large-scale liquidations in the past week have led to a significant decrease in trader participation.

Considering that negative news is likely to be priced in, we believe that USD is now facing an even greater downside risk.

Any positive news could force USD long positions to close in bulk and potentially send risky assets higher.

Today's CPI data could be a catalyst for a sharp decline in DXY.

For participants still holding long positions in crypto, tracking institutional flows and buying downside protection may be the best strategy; especially as put options are relatively cheap for now.