THE U.S. DOLLAR IS TESTING THE SAME ZONE THAT TRIGGERED THE 2017 AND 2021 #BITCOIN BULL RUN...
The Dollar Index (DXY) has broken below its 16-year long-term trendline, and is sitting at the critical level of 96.
Each time DXY has broken below 96 and held there, Bitcoin has moved aggressively higher.
- June 2017: DXY dropped below 96. Bitcoin rose almost 8x in the next 5–6 months.
- 2020 pandemic period: After massive liquidity entered markets, DXY lost 96 again. Bitcoin rose about 7x in the next 7–8 months. Ethereum and altcoins gained 10x, 20x, and more.
This is how liquidity cycles work.
When the dollar weakens:
- Cash loses relative strength
- Capital flows into scarce assets
Bitcoin benefits directly from that shift.
Right now, DXY is again at this historical trigger level while breaking its long-term structure. If it loses 96 and stays below, Bitcoin can start moving higher.