The annual variation of the DXY (U.S. Dollar Index), when it turns positive, has coincided with Bitcoin bottoms on several occasions.

While many focus on the DXY vs BTC relationship, the inverse correlation often breaks down for extended periods, especially since 2022. This makes the direct comparison less reliable.

Looking at the DXY from a yearly performance perspective, however, provides a much clearer signal. Historically, shifts into positive annual DXY territory have aligned more consistently with key bottoming phases in BTC, making this a more meaningful framework for analysis.