- Bitcoin Faces $90K Test as DXY Drops 8% in 80 Days
- Market Awaits Key US Data Amid Bitcoin Volatility
- Traders Watch $76.5K Support for BTC Stability
The US Dollar Index (DXY) has declined 8% in the past 80 days, falling from 110.176 to 101.267. During this time, Bitcoin has dropped by 13%, as global markets react to new US trade measures. While a weakening dollar usually supports risk assets, recent developments have created caution among investors.
Market Focus Shifts to Bitcoin’s Key Support and Resistance
Analyst Ali Martinez stated that $90,570 is the short-term holder realized price and a key resistance area for Bitcoin. He noted that crossing this level could support a renewed upward trend in Bitcoin. Market participants view this zone as a price that could attract short-term buyers back into the market.
TraderMagus identified $80,000 and $90,000 as the main support and resistance levels. If Bitcoin falls below $80,000, more downside may follow. However, if it moves above $90,000 with strong volume, the rally could resume. CarpeNoctom, another trader, pointed out that the recent DXY drop from 103 to 101 could support a rise in crypto prices.
The CryptoQuant Bull Score index has dropped to 10 out of 100. This score reflects weak market momentum, though some traders believe it could present a buying opportunity. Many are also watching for a price move that would shake off selling pressure from short-term holders.
Macroeconomic Shifts Add to Market Caution
Former President Donald Trump’s announcement of tariffs on over 100 trade partners has affected global sentiment. According to Arthur Hayes, co-founder of BitMEX, this move has weakened the dollar and increased selling in US tech stocks. He said, “The pain [will be] papered over with printed money, which is good for $BTC.”QCP Capital stated that traders are now focused on the US labor market report due April 4. If the data comes in weaker than expected, it may support rate cuts later this year. Traders are currently expecting four 25 basis point cuts in June, July, September, and December. Hayes added that if Bitcoin holds $76,500 until April 15, the market could stabilize.
