🌟Discussion on the relationship between the U.S. dollar index and Bitcoin trends🌟

Let’s focus on the U.S. Dollar Index (DXY), an indicator that essentially reflects the strength of the U.S. dollar relative to five other major currencies. Next, we want to analyze the trend relationship between DXY and Bitcoin price.

Historically, we have observed a significant phenomenon: when DXY rises, Bitcoin often performs poorly, usually either sideways or in a downward trend.

Taking 2020 as an example, before the last bull market started, DXY quickly fell back to around 90 after reaching a high of 102. However, during this time period, Bitcoin ushered in a strong rise. This can be verified from several arrow marks in the screenshot provided below.

This pattern shows that during periods of rising DXY, the Bitcoin price side tends to fall and vice versa. Therefore, some people believe that DXY can be regarded as a reverse indicator of Bitcoin.

🔍 But recently, things are a little different. Bitcoin has soared from US$24,000 to US$74,000, while DXY has made little movement and is still fluctuating sideways between 100 and 107. Looking back at the end of 2022, DXY is also 105, and Bitcoin is only about $16,000. What now? DXY is also 105, and Bitcoin has reached $60,000! Therefore, this change is definitely a positive sign for Bitcoin’s long-term trend.

💸 As the Federal Reserve may cut interest rates in the second half of this year, if the DXY trend falls as predicted, Bitcoin may usher in a strong rise. Although the impact of DXY on Bitcoin is a long-term trend, judging from the current situation, the trend of Bitcoin is still quite stable.

At the same time, facing the fact that Bitcoin is currently at around 60,000, there is still a support level of 60,000, coupled with the strong support in the 58,000-60,000 range, and the support of the last Bitcoin low of more than 56,000, investment Investors should not panic at the current position.

Finally, when it comes to investing, everyone must always maintain a calm mind and make investment analysis and judgments based on data and past historical trends. This will definitely allow you to develop a good investment strategy in the investment market. and habits.

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