Bitcoin is currently trading below the crucial $120,000 resistance level, facing increased downward pressure as the U.S. Dollar Index (DXY) shows significant strength.
Market analysts highlight the historical inverse correlation between Bitcoin and the DXY, noting that a strengthening dollar often prompts investor rotation towards traditionally safer assets, potentially triggering BTC price corrections.
The situation warrants close monitoring: a breakout above the DXY’s 102 resistance level could signal broader market weakness, exacerbating selling pressure on Bitcoin and other cryptocurrencies.
Technical indicators further support the bearish sentiment. Bitcoin’s Relative Strength Index (RSI) is flashing signs of exhaustion, suggesting diminishing upward momentum and heightened potential for near-term price declines in the leading cryptocurrency.
Investors are advised to watch Bitcoin’s attempts to overcome the $120,000 barrier. Failure to breach this key resistance convincingly increases the risk of a significant retracement.