Developing bull market signals could continue to boost Bitcoin prices despite the tense atmosphere of the US trade war.
Bitcoin (BTC) price extends recovery to around $85,100 on Friday after dumping to a new year-to-date low of $74,508 to start the week. Market uncertainty remains high, leading to a massive shakeout, with total liquidations hitting $2.18 billion across crypto markets.
Bitcoin sought higher levels around the April 11 Wall Street open as the week’s final US inflation data gave bulls hope.
Bitcoin gets key bullish dollar trigger
Another macro development failing to provide its standard risk-asset tailwind came in the form of multiyear lows in US dollar strength.
The US Dollar Index (DXY), which measures the dollar against a basket of US trading partner currencies, fell below the psychological 100 mark for the first time since 2022.
An accompanying chart examined relative strength index (RSI) data for the DXY monthly chart, showing it retesting a downward-sloping trend line as support from above.
“Traditionally, DXY going down is very bullish for $BTC, we now have a massive bearish divergence for DXY, which may suggest it goes to 90,” popular crypto analyst Venturefounder observed in part of an X post on the topic this week.
“Last 2 times this happened triggered a Bitcoin parabolic bullrun in final phase of the bullmarket (lasting 12 months).”
An accompanying chart examined relative strength index (RSI) data for the DXY monthly chart, showing it retesting a downward-sloping trend line as support from above.
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