The U.S. dollar index (DXY) is showing signs of a short-term top as the price of Bitcoin (BTC) demonstrates signals of a short-term rally.
There is a narrative that the price of Bitcoin often coincides with a drop in the value of the dollar.
Since stores of value, like gold and Bitcoin are priced against the dollar, theoretically, a downtrend in the DXY would likely have a positive impact on the price of BTC.
Bitcoin retakes $50,000 again
As the dollar began to consolidate, Bitcoin broke above $50,000 on March 3, putting it on track to retest the $51,600 resistance level once again.
BTC/USD 1-day candle chart (Bitstamp). Source: Tradingview
Above $51,600, there is little resistance until $56,000. Hence, breaking past this level is critical to secure upside momentum in the short term.
Bitcoin Jack, a semi-pseudonymous trader, who predicted the $3,600 bottom in March 2020, said:
“Considering it’s very likely to see a $1.9T stimulus package approved within the next 2 weeks, my best guess is dollar is topping out here. Could be wrong, butTitle: Bitcoin hits $51K as short-term bull case strengthens amid weakening dollar
Sourced From: cointelegraph.com/news/bitcoin-hits-51k-as-short-term-bull-case-strengthens-amid-weakening-dollar
Published Date: Wed, 03 Mar 2021 09:20:37 +0000