BTC to USD Surges as Dollar Falls, Reaching $91,563
The decline of the US Dollar Index has driven bitcoin's price to new heights, with the cryptocurrency nearing the $90,000 level. As investors seek alternative assets, bitcoin's resilience and low correlation with equities make it an attractive option, with the potential for further growth and a rise towards $110,000.
Bitcoin's price has risen above $88,238, a critical resistance level, driven by a decline in the US Dollar Index, which fell below 98, its lowest level in three years, and is likely to rally to $95,000 and potentially to $100,000.
The cryptocurrency's 2-day gain exceeded 8%, surpassing the 8% gain in the same period for the S&P 500 and Dow Jones, as investors sought bitcoin as an alternative to a diving dollar and turbulent stocks. The price surge coincided with a decline in stocks and a falling dollar, with US ETFs tracking the price of spot bitcoin logging $381.4 million in inflows on Monday.
Analyst Ed Engel noted that bitcoin's correlation with equities is historically low, and its resilience could continue. However, some analysts remain cautious, citing light trading volumes and the need for a significant catalyst to break above $93,000. The $90,000 level is a significant psychological barrier, and breaking above it could lead to a rise towards $110,000.
Other cryptocurrencies, such as Ether, XRP, BNB, Solana, Dogecoin, Cardano, and Chainlink, are also showing signs of relief rallies or bullish control, with key levels to watch, including the 20-day EMA and 50-day SMA. The market has seen a rally in the past 24 hours, driven by money flowing away from the US dollar and into other assets.
As the US Dollar Index continues to fall, bitcoin's price is likely to remain strong, with the potential to break above $93,000 and reach new heights. Despite some caution from analysts, the author recommends buying on dips, citing the asset's risk appetite and its ability to hold up well despite market noise.