Bitcoin Bullish Sentiment Amid DXY Movements

Real Vision’s chief crypto analyst, Jamie Coutts, expresses strong bullish sentiment towards Bitcoin (BTC), highlighting a significant catalyst that could propel the cryptocurrency higher later this year.

In a recent social media thread aimed at his 36,000 followers on X, Coutts discusses a recent movement in the US Dollar Index (DXY), indicating that historical patterns suggest a forthcoming rally for Bitcoin.

> “When looking at this recent move in the DXY through a historical lens, it’s challenging to be anything but bullish. I ran a signal screen for three-day negative moves of more than -2% and -2.5% and found they have all occurred at Bitcoin bear market troughs (inflection points) or mid-cycle bull markets (trend continuations).”

Coutts notes that the significance of these medium-term signals is constrained due to limited historical data, but considers it a noteworthy objective point.

He points out that in 2013, there were eight instances where the DXY declined by at least 2.5%, with Bitcoin’s price subsequently rising each time, averaging a 37% return within 90 days. In cases where the DXY dropped less than 2% during the same period, Bitcoin increased 17 out of 18 times, averaging a 31.6% gain within 90 days.

Coutts believes the potential for a Bitcoin price surge is strong.

> “This week had it all. The DXY saw its 4th largest negative three-day move – massively liquidity-positive. Just as Bitcoin nuked and had its worst Feb in a decade. Meanwhile, in altcoin land, the Top 200 crypto index dipped one more time. The chart shows that 365 days of New Lows hit 47%, a hallmark of capitulation in a bull cycle. The stage is set for a new all-time high in Bitcoin and Top 200 aggregate market cap by May.”

As of now, Bitcoin is priced at $87,881, exhibiting a slight increase for the day.

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