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The U.S. dollar is starting to weaken once again as sellers are pushing the U.S. Dollar Index (DXY) downward, which could strengthen the momentum of Bitcoin (BTC) in the near term.
When the DXY drops, it causes BTC to rise against the dollar.494 ??
Dollar's share of global reserves is dropping fast
According to Holger Zschaepitz, a market analyst at Welt, the U.S. dollar's share of global reserves is rapidly declining as countries like Russia are pursuing a de-dollarization strategy and opting for gold.
Depreciation is partly responsible, but other factors play a part in weakness.
As long as the dollar continues to wane, there is a strong probability that Bitcoin will continue to rally in April. April has been a strong month for Bitcoin over the past ten years, recording positive gains in five consecutive years since 2016.
Zschaepitz said:
"OOPS! Dollar in decline. While Dollar’s share of global reserves initially increased at start of pandemic, it has since decreased & now stands at just 59%—1.5pp decline QoQ & lowest since 1995. Part of decline due to depreciation, but also due to active USD selling."
There are 4,494
Historically, April has been a strong month for Bitcoin throughout the past ten years, recording positive gains for five consecutive years since 2016.
April is a good month for #Bitcoin
— Bitcoin Archive (@BTC_Archive) March 29, 2021
Net Bitcoin miner position changes. He wrote:
"Law of averages gives #Bitcoin an $83,000 price target for April. Avg over 10 years in April +51%."
Miners appear to be accumulating Bitcoin
Atop the favorable macro factors for Bitcoin, Lex Moskoviski, the CIO at Moskoviski Capital, pinpointed that miners recently began ramping up their BTC holdings.
The following sentence applies to . He said:
"Miners started really ramping up their positions. 4,494 #Bitcoin stacked today on aggregate. Another 4,380 #Bitcoin stacked by miners yesterday. Looks like a trend, indeed."
When miners sell their holdings, Bitcoin typically sees a pullback as it can cause heavily leveraged orders in the futures market to see cascading liquidations.
Bitcoin tends to perform exceptionally well during April if the U.S. dollar continues to drop. Since 2016, Bitcoin has continued to gain value during April for five consecutive years.
There are a lot of chances to win big in April If it continues to consolidate above it, the chances of it seeing a strong breakout above the $60,000 resistance level greatly increases.
