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The recent performance of the US dollar index has been strong, although it has not yet broken through the key threshold of 100, but the local trend is clear. In this context, while risk assets like BTC still perform steadily, they also face potential pressure.
The 100 level is crucial for cryptocurrencies. As highly speculative assets, BTC is far more sensitive to changes in the strength of the US dollar than other assets. When the DXY approaches the 100 region again, the market falls into a delicate balancing point.
Key observation: The BTCDXY ratio has already approached the previously discussed bearish retest zone. Once the DXY truly breaks through and stabilizes above 100, it is very likely to trigger a rejection of the BTCDXY ratio—posing a substantial threat to BTC prices.
An optimistic scenario is that if the DXY is repelled at this resistance level, the BTCDXY ratio may recover its macro structure. However, it should be noted that both BTC and the BTCDXY weekly trends have weakened, and the weekly SMA has also lost its strong support. This means that even if there is a rebound, it is necessary to observe whether a strong weekly pattern can be re-established.