Bitcoin rises thanks to weak USD, but not strong enough to surpass $120K
Bitcoin (BTC) recovered thanks to the weakened USD index (DXY) following poor job data, increasing expectations that the Fed will cut interest rates. However, macro data and signals from the credit market are holding back the upward momentum. Although a weak dollar is a supporting factor, BTC has still not surpassed $114K.
The ICE BofA High Yield Spread credit index at 2.85 indicates a neutral risk appetite – not enough to trigger a strong rally. History shows that when this index rises, BTC usually falls; when it narrows, BTC rises. Recently, the index has been flat – reflecting hesitant investor sentiment.
Additionally, trade tensions and rising capital costs are also headwinds. New taxes from the U.S. could increase costs, affecting both the technology market and risk assets like BTC.
Conclusion: A weak USD helps BTC recover slightly, but there has not yet been a strong enough catalyst to break through the resistance zone of $120K. Investors need to closely monitor economic signals and developments in the credit market to assess breakout opportunities.
Zones to pay attention to:
Resistance: $115,500 – $118,000 – $120,000
Support: $112,000 – $109,700 – $105,000
