Bitcoin Primed for Rally as Dollar Index Crashes to 21-Year Lows — Will BTC Smash Its All-Time High?

The dollar's nosedive has crypto traders buzzing—Bitcoin's looking at its best setup since the 2021 bull run. With the DXY hitting levels not seen since the dot-com crash, capital's flooding into alternative assets. Crypto's favorite inflation hedge is back in the spotlight.

Technical breakout or bear trap?

BTC's flirting with key resistance levels as institutional money starts moving. The last time the dollar was this weak, Bitcoin rallied 300% in 12 months. But this ain't 2020—regulators have their knives out, and Wall Street's still trying to short crypto between martini lunches.

All eyes on the weekly close. A clean break above $69K could trigger FOMO not seen since the ICO craze. Or we'll just get another 'decentralized' lesson in how traditional finance always rigs the game.

Bitcoin is currently trading above all of its major moving averages, which typically denotes an overall upward trend and implies that any declines may quickly find support. A slight widening of the Bollinger Bands suggests that price volatility may increase soon.

Traders are keeping an eye on whether Bitcoin can break through resistance at $110,300 or if it will drop below support at $107,100. For the time being, the declining dollar creates favorable conditions for a possible Bitcoin rally. However, the speed at which traders take action may determine whether history repeats itself.