Bitcoin is currently facing downward pressure, with recent price declines raising concerns about a bear market. However, a rare buy signal related to the US Dollar Strength Index, which has appeared only three times historically, may indicate a potential bullish reversal. The DXY and Bitcoin have an inverse relationship, where a declining DXY usually supports Bitcoin price growth. Past instances of sharp DXY declines show that Bitcoin rebounds significantly, suggesting that a similar recovery could occur soon.
Historically, when the DXY strengthens, BTC tends to struggle, while a declining DXY often creates favorable macroeconomic conditions for Bitcoin price appreciation.
Despite this historically bullish influence, Bitcoin's price has continued to retreat, recently dropping from over $100,000 to below $80,000.
Following a period of sideways consolidation, BTC's price experienced a significant upward surge, gaining over 200% within months.
Currently, the DXY has been in a sharp decline, a decrease of over 3.4% within a single week, a rate of change that has only been observed three times in Bitcoin's entire trading history.
Collection
[
|
...
]