While Bitcoin and altcoins continue to exhibit highly volatile movements, the US Dollar Index (DXY) also experienced one of its steepest declines.
According to data shared by market analyst James Van Straten, the weekly decline of DXY has exceeded -4 deviations. The analyst stated that this situation is a rare event that has only occurred three times in Bitcoin history and that this sharp decline in DXY could be a bottom sign for Bitcoin.
According to the analyst, the weekly decline in DXY exceeding -4 deviations was seen in history in November 2022, when Bitcoin reached a bottom of $ 15,500 during the FTX crash; in March 2020, when Bitcoin fell below $ 5,000, and in the 2015 bear market.
According to the analyst, historical data shows that every time the DXY experienced a decline greater than -4 standard deviations, it coincided with a Bitcoin bottom, which was followed by significant price increases.
Apart from Straten, Real Vision analyst Jamie Coutts also noted that significant declines in DXY are strongly correlated with bullish trends in Bitcoin.
Noting that the sharp decline in DXY has historically been associated with Bitcoin bottoms, the analyst said that since 2013 there have been eight instances where DXY fell by more than 2.5% in three days, and in each case BTC prices rose over the next 90 days.
Stating that Bitcoin provided an average return of 37% with a 100% success rate during this period, Coutts explained that this rate corresponds to a BTC price of approximately $ 123,000.
The analyst also stated that DXY experienced its 4th biggest 3-day decline since 2013, that this is the bottom for Bitcoin and that he expects a new ATH by May:
“The stage is set for Bitcoin to reach a new all-time high by May.”
https://twitter.com/Jamie1Coutts/status/1897783064841097578
*This is not investment advice.
