4-7-2025 – Bitcoin is positioning for a potential surge toward record highs as the US Dollar Index dropped below 97 for the first time in three years, creating favorable conditions for the world’s largest cryptocurrency.
The dollar’s weakness stems from diminished expectations for Federal Reserve rate cuts following yesterday’s strong jobs report, which paradoxically weakened the currency rather than strengthening it. The DXY has fallen 11% this year, driven by concerns that the Fed will maintain its tight monetary policy stance despite economic pressures. Additional headwinds include worries about rising US national debt following the passage of President Trump’s recent legislative package.
Bitcoin, currently trading at $108,993 after a 0.74% daily decline, historically moves inversely to dollar strength. Technical analysts have identified an inverse head and shoulders pattern on Bitcoin’s daily chart, suggesting a potential 10% rally to above $119,000 if the cryptocurrency can maintain support above $108,272. The pattern indicates a shift from bearish to bullish momentum, with the RSI at 58 supporting the upward thesis.
However, Bitcoin faces significant resistance at its previous all-time high of $111,970, where profit-taking could create temporary setbacks. The cryptocurrency’s path to new records depends on continued dollar weakness and successful navigation of these technical levels.