Bitcoin Bulls Beware: Dollar Index’s ’Death Cross’ Signals Storm Ahead

The dollar just flashed a classic bearish signal—and crypto traders are ignoring it at their peril.

Why the 'death cross' matters: When the 50-day moving average crosses below the 200-day, history shows deeper pain often follows. This isn't astrology—it's the market's cold, hard pattern recognition.

Crypto's ironic twist: Bitcoin maximalists love to hate fiat... until the greenback's tremors shake their digital gold. The DXY's 3% drop last month barely dented BTC's rally—but complacency kills.

Wall Street's open secret: Traders use dollar weakness as a 'risk-on' signal... until they suddenly don't. Remember 2021's 'transitory inflation' party? The hangover came with a 60% BTC haircut.

Pro tip: When traditionalists and crypto bros agree the dollar's doomed, grab some popcorn—someone's about to be violently wrong. (Probably the guys charging 2% management fees to underperform Bitcoin.)

The last one occurred in January 2021, marking the bottom at around 90. The dollar caught the bid in the subsequent months, with the index eventually hitting a high of over 114.00 in September 2022.

Note that price patterns do not always unfold as expected, meaning the impending death cross may not necessarily trap bears; however, being aware of its past tendency can help traders manage their positions more effectively.

The dollar index, which tracks the greenback's value against major fiat currencies, tanked by 10.78% in the first half of the year, its worst performance since 1991.