Bitcoin and EUR/USD are in direct correlation. When EUR/USD reaches a new annual high, Bitcoin should follow.

• Bitcoin and EUR/USD are in direct correlation
• If EUR/USD reaches a new annual high, Bitcoin should follow
• Elliott Waves indicates a return over 1.10 for EUR/USD

It was a difficult summer for Bitcoin investors because the US dollar became stronger. After Bitcoin was traded over $ 30,000 in mid-April, it failed at the highest levels, just when the dollar began to strengthen.

The easiest way to interpret the price development of Bitcoin is a look at EUR/USD. When Bitcoin was traded over $ 30,000 in mid-April, EUR/USD achieved an impressive recovery of less than 0.96 over 1.10.

Then the EUR/USD course corrected to the range of 1.06 and Bitcoin followed it and fell to $ 25,000. Next, EUR/USD reached a new one and acted over 1.12, a movement that Bitcoin quickly copied and reached another annual high.

One can therefore assume that the EUR/USD should recover from the current level and act again over 1.12 so that Bitcoin can reverse the latest downward trend. More specifically, the strength of the dollar should end so that Bitcoin can reverse its course.

Eurusd-diagram of tradingView

Elliott Waves suggests that EUR/USD should act over 1.10 again

If you look at the EUR/USD rally from the low in 2022 through the lens of the Elliott wave theory, it becomes clear that the market has completed a five-wave structure when it reached 1.12.

Everything fits - the expansion, the canalization and even the withdrawal from the highest stands, completed at the right time that is required to validate the pattern.

This means that the EUR/USD weakness observed in the summer months is part of a correction phase. After termination, the correction should be fully traced back.

Therefore, all eyes are focused on the key level of 1.10. By re -reaching the level, EUR/USD should also make an offer under Bitcoin, provided that the correlation mentioned above remains valid.