Bitcoin price had recovered from the recent price slash that occurred due to the Russia-Ukraine conflict. The price had almost smashed $45,000 but failed to sustain above these levels and is currently feared to plunge below $41,000. While the bearish scenario is slowly getting intensified, yet possibilities of going parabolic are still high. However, the fear of BTC price plunging back to some extent is hovering within the price.
The star crypto shares a unique bond with the US Dollar’s strength indicator DXY. The BTC price usually slashes whenever the DXY surge and becomes strong. It had happened a couple of times before in 2019 and 2000. Due to some external factors, the BTC price bottomed hard signalling a bear market. And this was when the DXY showcased huge strength,
As mentioned by an analyst, the DXY and Bitcoin both maintained a symmetrical level. Whenever, BTC prices plunged to these levels, the DXY price spike from these symmetrical levels. Previously before the Covid crisis, DXY entered a parallel channel as the BTC was recovering from the 2019 slash. But with the Covid crash, the DXY spiked high
Further, when Bitcoin price recovered to a notable extent DXY plunged hard weakening the strength of the dollar to a large extent. Currently, a similar trend is repeating wherein the DXY has initiated trending within a channel. And on the other hand, BTC price is attempting very hard to flip from the symmetrical levels. Therefore a huge possibility of the star crypto going parabolic surfaces that may escort the price close to the ATH soon.
Source: https://coinpedia.org/price-analysis/bitcoin-price-rally-to-weaken-dollar-dxy-index-when-will-btc-price-hit-50k/