Bitcoin (BTC) Demonstrates Strength and Resilience as the Dollar Index (DXY) Continues Its Losing Streak

As investor sentiment shifts globally, the Dollar Index (DXY) has continued its losing streak and entered a steep downward spiral, breaking below important support levels.

Investor sentiment is shifting across the globe and the Dollar Index (DXY) has continued its downward spiral, breaking below key support levels as a result. The Index fell 1.48% significantly in the 24-hour period to trade at 99.16 at the time of writing.

In the meantime, Bitcoin is showing strength with a 3.26% increase in 24-hour trading and reached $85,885.

This move in dollar-to-BTC performance sparks the well-known question: is the two assets’ inverse correlation still in place?

According to the charts, the DXY broke below the 100 mark for the first time in several months, a fact that is sure to raise strong concerns in traditional financial circles.

The Index has been on a steep decline from its yearly high of 105, and its RSI went deep into oversold territoryaround 26.

This suggests that a technical bounce in the index may be imminent, but it has yet to materialize.

On the other hand, Bitcoin has been showing signs of strength as it continues to rally. The crypto is now approaching the 200-day EMA, a key psychological barrier for traders at about $87,000.

Bitcoin price action is heating up. On March 15, BTC’s 50-day EMA was crossed by the 100-day EMA. A technical indicator used by analysts to identify the strength or weakness of a trend, RSI is currently at 56, remaining in the mid-range despite the crypto’s 60% price recovery since November 2023.

The recent surge in Bitcoin is also coinciding with an increase in trading volume and an elevation in investors’appetite for taking on more risk.

Previously, there was a somewhat inverse relationship between BTC and DXY - when dollar strength declines, riskier assets like Bitcoin tend to rise. It appears that pattern is unfolding once again.

A weakening dollar increases the appeal of alternative value stores, especially with future U.S. monetary policy in mind.

As the DXY continues to decline, all eyes will be on whether Bitcoin can sustain this breakout. The implication of this divergence if it persists could be more capital rotation into cryptocurrencies, especially from investors fleeing fiat devaluation.

Solana rides short-term bullish wave with new Canada ETFs

Solana is currently heating up with a 1.76% gain for the day to trade at about $131. The asset has been moving consistently within an ascending trendline over the last few sessions, indicating a steady build-up of momentum.

But this rise is now approaching a critical turning point, and a break below the trendline could quickly push SOL below $130, highlighting the final significant support zone around $116.

Technical indicators show that SOL’s recovery has been largely driven by momentum, as volume has increased significantly enough to support strong institutional or retail interest. Without volume support, this trendline breakout would increase downward pressure. The RSI is still neutral but slightly higher, allowing for a swift reversal of momentum in selling pressure.

Solana’s overall narrative is getting a boost from Bloomberg ETF analyst Eric Balchunas, who recently confirmed that Canada will be launching several spot Solana ETFs on April 16.

These funds, from leading asset managers Purpose, Evolve, CI, and 3iQ, have been approved by the Ontario Securities Commission (OSC).

These ETFs will be unique in that they will allow for SOL staking, a feature not yet available in any U.S.-based ETF.

This move puts Canada at the forefront of altcoin ETF innovation and could set a standard for future cryptocurrency investment vehicles in international markets.

The true test will be whether Solana can sustain its upward momentum, although the ETF news may continue to improve investor sentiment in the near term. The 100 EMA could be retested around $154 if the resistance range of $135-$140 is breached. However, everyone’s attention is still on the trend.

Dogecoin faces make-or-break moment as key levels approach

Dogecoin is heating up, trading just above the $0.16 mark as a short-term ascending trendline that has provided support over the previous few trading sessions. But this upward move appears to be facing difficulties, and a breakout below this trendline could expose the asset to significant downside pressure.

According to the chart, Dogecoin has been trading within a relatively narrow band, with support located just below the trendline and resistance looming closer to $0.167. A move below this trendline would signal a clear bearish structure to the market.

If this trendline breaks, the next crucial support area lies around $0.10, which was a strong bounce point previously