Bitcoin $BTC$63,888.86 The dollar index (DXY) is moving in the opposite direction, with the latter on the brink of a major move that could encourage crypto bears.
The largest cryptocurrency has been under pressure for a third straight day, trading around $63,900, down nearly 1% since midnight UTC. With the exception of a few tokens such as HASH, XLM, and ENA, which rose more than 7%, the broader market has shown almost similar losses.
The dollar index, which tracks the value of the U.S. currency against major fiat currencies, rose 0.26% to 100.66, extending Wednesday’s 0.8% rise. Notably, the index is now firmly breaking out of its 13-month trading range.
This type of setup usually leads to the pursuit of further momentum by the trader, resulting in further profits. A strong dollar typically puts pressure on dollar-denominated assets such as Bitcoin.
$BTC Historically, it has tended to move in the opposite direction of the dollar. The 90-day correlation coefficient with DXY was recently -0.82.
