Bitcoin is drawing more and more new enthusiasts as the dollar is losing strength due to the trade tensions across the United States.
Bitcoin is not affected by the recent market volatilities and has been able to maintain its position at around the $84,000 level as of late, as investors see the potential in the US dollar’s decline. The global trade conflict is still an influential factor in many people’s minds as the situation continues, and it is important to note that, according to a great number of cryptocurrency analysts, this year’s rally is very similar to 2023’s rally.
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The question of the US dollar’s strength is also a question of whether Bitcoin breaks free.
The dollar index of the United States is at the lowest levels it has encountered for several years (around $92.5), thus proving the taunting of USD bulls to be an assumption. This is evident as they show the perfect timing, as it is currently ����� China to the US already in full kook mode, Pinduoduo, Didi, and a few other Chinese unicorns are hiding from US plagiarism hackers to the sound of the US government’s objection., Functionally speaking, it was the China factor that threw USD bulls far.
Besides, a dark horse of interconnected stock and bond markets that are more likely to amplify the geopolitical situation is so far turning a blind eye.
“The statement DXY is going down quicker than ever before since 2029,” BitBull said to X, mentioning that’s the period when Bitcoin is also thriving.
“Back then, BTC had already bottomed (Q4 2022) and went on to rally 200 %+ within a year. I guess it’s time for BTC to repeat the 2023-24 rally.”
Adding to this perspective, Andre Dragosch, European head of research at asset management firm Bitwise, highlighted Goldman Sachs’ research suggesting further dollar depreciation ahead. “The US Dollar is still significantly overvalued according to GS,” he observed. “Lots of room for USD depreciation = upside potential for BTC to re-rate.”
Gold Shows Its Brilliance as Bitcoin’s Move Is Unsure
Even though Bitcoin was relaxing in the range from $83,000 to $86,000 after the sharp changes in its value, gold was still going up, and it even reached the level of $3,100 per oz and $3,300 per oz.
Trading firm QCP Capital noted this divergence in their latest market bulletin: “Unlike gold, BTC has not caught a safe-haven bid. The ‘alternative store of value’ narrative isn’t gaining traction in the current macro regime. Positioning remains defensive. Participants are still focused on hedging their downside until greater clarity emerges.”
Traditional markets reflected broader uncertainty, with the S&P 500 and Nasdaq Composite Index trading down 1.4% and 2.2%, respectively, as of April 16.
Technical Signals Show Promise
Despite the cautious sentiment, several Bitcoin traders identified potentially bullish technical signals. Popular trader Luca pointed to an “Inverse Head & Shoulders Pattern on the 4H timeframe,” suggesting a higher low could be forming.
Meanwhile, analyst Michaël van de Poppe expressed optimism about Bitcoin’s consolidation between key levels. “The test at $87K did happen, and I think that we’ll see a big breakout once we retest it again. What’s next? Likely a run to ATH at the end of this quarter.”
As the market navigates this period of economic uncertainty, Bitcoin’s performance against the weakening dollar will be a critical indicator for cryptocurrency investors in the coming months.
