The US dollar's recent decline has reignited bitcoin’s potential to challenge the $120,000 resistance level, yet macroeconomic risks and credit signals introduce caution for traders and investors alike.
Dollar Weakness and bitcoin's Short-Term Outlook
The inverse relationship between the US Dollar Index (DXY) and bitcoin remains a critical factor in short-term sentiment. When the dollar weakens, bitcoin often benefits, but this correlation is not guaranteed to sustain.
Recently, the DXY fell below 99, after climbing to over 100 in July, reflecting investor expectations of Federal Reserve interest rate cuts amid subdued US jobs data.
