The US Dollar Index (DXY) is showing signs of peaking in the short term, while the Bitcoin (BTC) price is signaling the start of the rally.
The bitcoin price rise often coincides with the depreciation of the dollar.
Since value storage tools such as gold and Bitcoin are priced in dollars, it seems likely that a downtrend in DXY will have a positive impact on the BTC price.
Bitcoin is over $ 50k again
As the dollar began to consolidate, Bitcoin rose above $ 50,000 again on March 3 and began rising towards the $ 51,600 resistance.
Bitcoin Price Index: How much is 1 Bitcoin in TL? (BTC TL)
Above $ 51,600 there is little resistance up to $ 56,000. Therefore, crossing this level is critical for maintaining the upward momentum in the short term.
Anonymous investor correctly predicting that BTC will drop to $ 3,600 in March 2020 Bitcoin Jackstated:
“Considering that the $ 1.9 trillion stimulus package is highly likely to be approved in the next 2 weeks, I think the dollar has peaked at this point. I might be wrong, but the current structure is quite similar to the previous consolidation period.”
Bitcoin has declined over the past week, possibly due to the rise in the dollar and bond yields.
In this case, as the dollar declines and bond yields decrease, BTC can be expected to gain in value in the coming weeks.