Analysis: The U.S. Dollar Index (DXY) is approaching a breakout above its resistance range; BTC may remain under pressure or continue its inverse correlation with DXY.

According to CoinDesk, Bitcoin—viewed as the “counterpart” to the U.S. Dollar Index (DXY)—is facing sustained pressure amid market expectations that the DXY is poised to break above the upper bound of its 13-month trading range. Data shows Bitcoin has weakened for three consecutive trading days, hovering near $63,900, while the broader crypto market is likewise under broad pressure. Meanwhile, the DXY rose 0.26% to 100.66, extending the previous day’s 0.8% gain and approaching the critical threshold for a breakout. Analysts note that if this structural breakout is confirmed, it typically triggers trend-following capital to further amplify the dollar’s upward momentum. Historical data reveals a clear negative correlation between Bitcoin and the DXY: a stronger dollar generally weighs on risk assets priced in U.S. dollars. Markets believe the Federal Reserve’s hawkish stance reinforces the dollar’s supportive fundamentals and may further drive capital toward safe-haven and dollar-denominated assets.