The common narrative shared over recent months is that Bitcoin is adversely affected by increases in the value of the U.S. dollar. Case in point: when the dollar began to spike in February and March, BTC began to tumble lower, as did the S&P 500 and the price of gold.
More recently, when Bitcoin topped in August, the U.S. dollar was in the middle of a dead cat bounce.
But over recent days and weeks, the two markets have begun to disconnect. Bitcoin has somewhat flatlined as the U.S. Dollar Index (DXY) has undergone a strong 1-2% bounce.
An analyst says that the ongoing disconnection between these two markets could be a sign that BTC is poised to surge higher.
Related Reading: MicroStrategy’s Stock Continues to Soar After Bitcoin Purchase
Bitcoin Rally Could Soon Come Despite U.S. Dollar Bounce
While the U.S. dollar is moving higher, an analyst thinks that Bitcoin may be on the verge of a strong move higher.
He shared the chart below on September 22nd. It shows that the last time the U.S. dollar showed strength and Bitcoin didn’t immediately dump, the cryptocurrency proceeded to surge parabolicly.
Commenting on how this trend could mean BTC soon rallies, the trader said:
“The $DXY is showing strength & $BTC isn’t dumping? Did we see this before? Yes, before the rally towards 20K in 2017. Same dollar value, same price action from both & same behaviour