Bitcoin expands its traditional market lead as the dollar falls

Last weekend, cryptocurrency markets gathered before future openings, continuing the trend of investor interest in alternative assets. Bitcoin led the allegation, giving back some gains after U.S. stock markets closed, up 3.70% the next day. After briefly reaching a high of $88,400, the world's largest cryptocurrency is currently trading at around $86,900.

This surge in Bitcoin coincides with the ongoing weakness in the U.S. dollar index, as trade tensions between the U.S. and China continue to pressure. DXY recently hit a new low at 97.92, further suggesting that global investors are cautious about the strength of the dollar in the current macroeconomic environment.

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The key level of viewing

As Bitcoin continues to show relative strength compared to traditional markets such as the Nasdaq and S&P 500, S&P 500, many analysts turn their attention to cryptocurrencies as potential beneficiaries of broad market uncertainty. As DXY and mixed signals weaken in the stock market, Bitcoin has become a more flexible option for investors looking to hedge against currency depreciation and macro volatility.

Given the current market volatility, keep an eye on key technology levels that may impact next steps. The $88,000 area rejection (one area highlighted in the previous post) could be short-term exhaustion. However, this has not confirmed a trend to resume a wider bearish higher time frame.

Trend: Blackrock calls 2025 a year of alternative assets. A company from New York City has quietly set up a group of more than 60,000 investors who all join the formerly unique billionaires such as Bezos and Gate.

Instead, Bitcoin’s lower time frame still tells a bullish story. On the four-hour chart, the structure remains intact, with a crucial swing of $83,900. As long as the price is above this level, the bullish market structure remains valid. However, a clean rest and close below the area allows the door to be opened for deeper corrections in the short term.

It is also worth noting that Bitcoin’s recent strength has not happened in isolation. As the dollar weakens, other major currencies such as the euro and pound also have a lot of room for upside, strengthening the narrative that capital is spinning green and turning it into alternative assets including Crypto.