Key Insights:
- Bitcoin is retesting a key breakout zone while the DXY slides toward multi-month lows.
- Net taker volume on Binance spikes above $100M ahead of strong U.S. jobs data.
- Spot Bitcoin ETFs rake in over $600M in inflows as institutional demand surges.
Bitcoin traders are eyeing a potential repeat of the explosive rallies seen in 2021 and 2023. The U.S. Dollar Index (DXY) has started to slide again, historically acting as a bullish trigger for BTC. With institutional flows rising and technical patterns aligning, market sentiment appears to be shifting.
DXY Declines as BTC Mirrors Historical Bullish Setups
Crypto analyst Crypto Patel highlighted a striking correlation between DXY drops and BTC rallies during previous cycles. In both 2021 and 2023, Bitcoin experienced massive surges as the Dollar Index fell sharply.
The 2025 setup now reflects those same conditions, with DXY trending downward from 106 to under 100.
Technical projections also show DXY may fall further toward 92, potentially extending the bullish window for Bitcoin. If the inverse correlation holds, this could provide tailwinds for BTC in Q3 and beyond.
However, on the lower time frame, Bitcoin is now retesting a critical trendline resistance around $109,000. Titan crypto Ichimoku analysis shows that while price has broken out, the Lagging Span has yet to confirm the move. A clean breakout would require the Lagging Span to move above the cloud and trendline.
Despite this, the structure remains bullish. A short-term pullback to the Tenkan line at $107,900 would not invalidate the trend. A daily close above $110,000 would offer stronger confirmation of the bullish trend.
On-Chain Metrics and ETF Flows Fuel Bullish Sentiment
On-chain data from CryptoQuant, shared by Amr Taha, shows Binance’s net taker volume exceeding $100M—a level not seen in weeks. This spike happened just before the release of strong U.S. employment numbers, suggesting proactive buying from larger participants.
The U.S. economy added 147K jobs in June, beating the forecast of 111K, while unemployment eased to 4.1%. This data reduced fears of an economic slowdown and lifted sentiment across equities and crypto alike.
Simultaneously, Spot Bitcoin ETFs recorded $601.8M in net inflows, according to SoSoValue. BlackRock’s IBIT attracted $225M, while Fidelity’s FBTC pulled in $237M, signaling continued institutional interest. Finbold also reported that over 26,000 new Bitcoin millionaires were created this year as BTC hit $111,970 in May.
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Source: https://coincu.com/346786-dxy-falls-again-will-bitcoin-repeat-its/