Closely followed crypto analyst Jamie Coutts says one indicator with a history of calling Bitcoin Q2-Q3 rallies is potentially about to flash green for BTC.
Coutts tells his followers on the social media platform X that the dollar index (DXY), which measures the strength of the US dollar against a weighted basket of other major foreign currencies, is a critical indicator to watch for Bitcoin.
DXY is often inversely correlated with risk assets, rising when they sell off and falling when they rally.
According to Coutts, every summer (June to September) Bitcoin rally has been sparked by a weakening dollar index.
“If there was one indicator to watch to see if this thesis is playing out accordingly, or not, I think it would be the dollar. Every BTC summer rally has been precipitated by a stronger dollar, which peaks and rolls over, which as it cascades lower, sends BTC skyrocketing.”
With the DXY in the midst of a long consolidation range, Coutts says that a break below the 101 mark could be what kicks off a massive rally for BTC.
“Currently, the DXY is trapped in a narrow consolidation range. A break above 107-108 would put serious pressure on all risk assets.
A break below 101 should see a move to the low 90s, which if that were to occur, would likely send BTC to $150,000 based on previous DXY moves.”
At time of writing, Bitcoin is trading at $67,759.
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