The collapse of the dollar index supports the long-term bullish case for Bitcoin. However, BTC's short-term technicals look bleak.
The dollar index has experienced its worst six-month performance since 1991, falling by more than 10% due to trade tensions and calls for rate cuts.
An expert stated that technical indicators suggest the dollar may face further losses, which could make Bitcoin a bullish factor.
The short-term outlook for Bitcoin is bearish, and technical signals indicate that it may decline unless it breaks through the current resistance level.
According to data from TradingView, the DXY fell by more than 10% in the first half of the year, the worst six-month performance since the third quarter of 1991. President Donald Trump's trade war and the Federal Reserve's continuous calls for rate cuts should have put pressure on the dollar.
The sharp decline has broken a 14-year rising trend line, pushing the MACD histogram on the half-year price chart below zero.
