Bitcoin (BTC<\/a>) may see a \u201cparabolic curve\u201d begin thanks to United States dollar weakness as the greenback falls to three-month lows.<\/p>\n In a tweet<\/a> on July 11, popular trader Moustache suggested that the time is right for BTC price history to repeat itself.<\/p>\n Bitcoin\u2019s formerly strong inverse correlation to dollar strength has waned this year<\/a>, but its latest movements are a talking point among traders.<\/p>\n Data from Cointelegraph Markets Pro<\/a> and TradingView<\/a> shows the U.S. Dollar Index (DXY) on the way to testing support at 100 for the first time in months.<\/p>\n Previously above 105, the greenback has faced stiff resistance after 2022s 20-year highs. <\/p>\n As a result of its newfound bearish behavior \u2014 which would cement itself further should the 100 mark be lost \u2014 Bitcoin stands to win, Moustache believes.<\/p>\n \u201cCalm before the storm. Big Move is still loading,\u201d he summarized alongside a chart showing DXY challenging the bottom of a Gaussian channel on weekly timeframes. <\/p>\n \u201cFirst candle of the DXY (Dollar) now falls OUT of the channel. This is the point where you want to be positioned. In 2016-2017 and 2020-2021 this led to the parabolic curve in $BTC.\u201d<\/p><\/blockquote>\n The dollar\u2019s cause has not been helped by markets keen to tap a potential reversal in U.S. interest rate hikes. With inflation abating, this looks ever more likely despite a hawkish Federal Reserve.<\/p>\n The July 12 release of the Consumer Price Index (CPI) for the month prior came in below expectations<\/a>, providing further fuel for risk assets.<\/p>\n Fellow trader Mikybull Crypto predicted that the downward DXY trend would continue, with BTC\/USD hitting $35,000 as a result.<\/p>\n Bears in disbelief<\/p>\n 90 next on DXY#Bitcoin<\/a> to 35k$ pic.twitter.com\/TczJMGKh5I<\/a><\/p>\n \u2014 Mikybull Crypto (@MikybullCrypto) July 12, 2023<\/a><\/p><\/blockquote>\n Continuing the historical comparison, meanwhile, popular trader Josh Olszewicz called DXY the \u201csingle most important chart\u201d for Bitcoin into 2024.<\/p>\n \u201cDXY showing technical weakness coupled with a programmatic supply reduction of Bitcoin issuance may lead to an outsized price reaction for Bitcoin post-halving. Similar DXY moves from 100 to 90 after the previous two halvings provided a tailwind for significant multi-month bullish rallies,\u201d he wrote in a TradingView update<\/a>. <\/p>\n \u201cDXY is currently forming a high timeframe descending triangle, which holds a bearish bias. This chart pattern becomes invalidated with any higher high in the DXY at 103.50 but does not necessarily invalidate the possibility of a move to the historic range low of 90.\u201d<\/p><\/blockquote>\n Adding a broader perspective, William Clemente, co-founder of crypto analysis firm Reflexivity Research, presented the year-on-year change in DXY against how BTC\/USD behaved through the years.<\/p>\n Related:\u00a0Bitcoin exchanges now hold the same BTC supply share as in late 2017<\/a><\/em><\/strong><\/p>\n Since everyone wants to talk about DXY (US dollar) weakness, here’s Bitcoin’s price plotted against the YoY change in the DXY: pic.twitter.com\/voJAfeF1ok<\/a><\/p>\n \u2014 Will Clemente (@WClementeIII) July 12, 2023<\/a><\/p><\/blockquote>\n Looking back, the last time that DXY traded at 100 was in mid-April 2022.\u00a0At the time, Bitcoin hovered at around $40,000.<\/p>\n Collect this article as an NFT<\/a><\/em><\/strong> to preserve this moment in history and show your support for independent journalism in the crypto space.<\/em><\/em><\/p>\nDXY \u201cmost important chart\u201d for Bitcoin this year<\/h2>\n
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April levels return<\/h2>\n
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