Bitcoin (BTC) Bullish Signals Strengthen as Dollar Weakens, Analyst Says

Crypto analyst Jason Pizzino believes Bitcoin (BTC) may be on the verge of a significant breakout after flashing several bullish signals.

Crypto analyst Jason Pizzino is detecting strong bullish signals for Bitcoin (BTC) as the US Dollar Index (DXY) shows weakness, suggesting that the cryptocurrency may be poised for a substantial breakout.

In a recent analysis, Pizzino highlighted Bitcoin’s significant push into the $90,000 range as a critical development.

As shown by the chart, BTC managed to break above March’s monthly high, which invalidated the previous bearish signals that had been setting up with the December, January, and March 2024 tops.

Bitcoin price chart. Credit: Jason Pizzino/X

Now that Bitcoin has moved above these key points and these trends are canceled, it suggests a stronger bullish outlook for the asset, according to the analyst.

Weak Dollar Index Supports Bitcoin’s Momentum

Pizzino highlighted the role of the US Dollar Index (DXY) as a major factor. The DXY recently closed at its lowest weekly level in approximately 37 months, which Pizzino described as a historically weak closing price for the index.

According to historical patterns, a weaker dollar usually precedes major upward moves for Bitcoin.

The DXY, which measures the dollar against a basket of global currencies, is known to trend in cycles of 3.5 to 5.5 years.

According to Pizzino, the index is still in a broader bearish cycle, which began in December 2014. Historically, when the DXY is in a strong bearish cycle, it usually trades below the 70.00 level for extended periods.

After World War II, the DXY has closed at a lower weekly candle than the one on March 24 at only seven times.

Weak US Dollar Index Could Fuel Bitcoin Breakout

Pizzino further pointed out the breakdown in Tether (USDT) dominance. The stablecoin’s market cap relative to the broader crypto market had slipped below important support thresholds, which signaled that traders were shifting capital from stablecoins into riskier assets.

Despite remaining above the 50% critical threshold, USDT’s dominance has been steadily declining from the 56.0% level, reached in December 2023.

According to Pizzino, this signaled that investors’ risk appetite is growing, suggesting that Bitcoin could have more upside potential in the near term.