Bitcoin Bullish Signals Strengthen as Dollar Weakens, Analyst Says
Pizzino emphasized Bitcoins strong move into the $90,000 range as a critical turning point.
According to Pizzinos analysis, BTC successfully broke through Marchs monthly high. This breakout invalidated previous bearish signals that had previously marked tops in December, January, and March 2024. With Bitcoin now surpassing these critical points, he assessed that the bearish trend had been canceled, suggesting a stronger bullish outlook for the asset.
Weak Dollar Index Supports Bitcoins Momentum
Pizzino also pointed to the performance of the US Dollar Index (DXY) as a major contributing factor. The DXY recently closed at its lowest weekly level in approximately 37 months, a movement he interpreted as historically favorable for Bitcoin.
Drawing on historical patterns, Pizzino noted that a weakening dollar typically precedes major upward moves for Bitcoin. The DXY, which measures the dollar against a basket of global currencies, continues to trend downward a development he believed would likely fuel Bitcoins ongoing recovery.
Declining Tether Dominance Hints at Increased Crypto Risk Appetite
Further strengthening the bullish case, Pizzino highlighted the breakdown in Tether (USDT) dominance. The stablecoins market cap relative to the broader crypto market had slipped below important support thresholds, which he interpreted as a sign that traders were increasingly moving capital into riskier assets like Bitcoin.
Although USDT dominance remains above the critical 50% mark, its ongoing decline reinforced the view that investors risk appetite is growing. This trend, combined with the previous technical breakouts, suggested to Pizzino that Bitcoin could have further upside potential in the near term.
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