The value of Bitcoin has experienced a decline this week, dipping below 110,000 USD. There is concern that it might also breach the significant barrier of 100,000 USD.
Currently, a downward trajectory appears to have commenced and remains unresolved.
Overview
Bitcoin’s Price Decline
On Thursday, September 18th, Bitcoin managed to close above the 117,000 USD mark.
The following day saw a drop below this level with prices closing under 116,000 USD before the weekend arrived.
The weekend was uneventful; however, Monday marked the start of an ongoing correction phase. This downturn began precisely seven days ago and persists today.
A similar scenario unfolded at August’s end when a two-week downward trend occurred post all-time high achievements.
This previous correction bottomed out on August 29th beneath 107,500 USD; recent figures haven’t dipped below 108,000 USD yet.
Early September witnessed slight recovery as prices rebounded on September 16th reaching back up to around117kUSD which briefly sparked optimism among traders—though such hope proved premature in short-term analysis.
The Dollar Index (DXY)
The fluctuations in Bitcoin pricing closely mirror movements within TheDollarIndex albeit inversely due largelytoBTC’snegativecorrelationwithDXY.
StartingfromFridaySeptember5theDollarIndexresumeditsdeclinehavingalreadylostover10%sinceJanuary8peaklevel.
ThisdownwardtrendcontinueduntilSeptember16culminatinginlossofmorethan1point6percentwithinlessthanfortnightperiod.
LikelythisfallindollarindextriggeredbitcoinpricereboundearlymonthonlytoseeBTCdropagainonceDXYrecovered.
IndeedbeginningonSeptember17theDollarIndexrosefrom96point7previousdayto98point5yesterdaynowhoveringaroundcurrentlevelbutuncertainhowlongitwillremainsteadythereforefuturemovementremainsunpredictable.
Predictions for Bitcoin’s Future
Divergentforecastsexistregardingdollarindextrajectorywhichcouldimpactbitcoincourseaswell
Firstsuggestionproposesthatrecentreboundmaynothaveconcludedshorttermallowingforadditionalgrowthwhilemaintainingdescendingchannel
Secondpredictionassertsmediumtermdescendingchannelmightpersistthroughyearendthuspotentialcontinuationminiupwardtrendshorttermfollowedbyreneweddeclineinthesubsequentmonthsifscenariosunfoldasexpectedcurrentbitcoindeclinemayextendfewmoredaysbeforebullrunresumesmidterm.
Potential Bull Market
Plausibilityofbitcoinbullmarketrevivalstemsfromexpecteddollardevaluationlaterthisyearwhichwouldterminateascendingchannelformed2007despitefluctuationsaveragepatternoverpastdecadeandhalfdisadvantagedusexportsfavorimportsultimatelyimbalanceforeigntradebalance
At2007closeusforeigntradebalancenegativeapproximately58billiondollarswhereasearly2024decreased67billionfollowingtrumpelectionnovemberrushimportspre-tariffapplicationledworstrecordmarchreaching136billionshortlyaftertariffsimplementedjulyfigurestillnegative78billionsolutionsuggestsdollardevaluationinterruptascendingchannelsince2007currentlylowerlinepositioned96pointsnotmuchbelow96pointsachievedseptember16shouldtrumpadministrationsuccessfullyhaltexistenceascendingchannelkeepingdollarindexbelow96pointsufficientdurationpositiveimpactbitcoinspricinganticipated.