Bitcoin's price continues to rise amid a significant decline of the US dollar, creating conditions for a potential new all-time high.
Bitcoin Price and Dollar Decline
Bitcoin was trading at $107,115 on June 25, up 8.65% from its weekly low. The ongoing decline of the dollar index (DXY) has been a potential catalyst for this increase, as it plunged to 96.98, its lowest since 2022.
Technical Analysis and Forecasts
The daily chart shows that Bitcoin price has remained above the 100-day Exponential Moving Average, providing substantial support since April. A bullish flag formation is emerging, consisting of a vertical line and a descending channel, part of a cup-and-handle formation. The projected target price is $143,780, assuming it doesn't fall below the 200-day moving average at $94,000.
Outlook and Influence of Fed Decisions
The dollar's weakness has deepened as investors anticipate that a new Fed Chair could move quickly on interest rate cuts. Analysts at Morgan Stanley are projecting seven rate cuts by 2026, which could positively impact Bitcoin and other risk assets.
Current trends in the Bitcoin market and the decline of the dollar create potential for new records. Investor attention is focused on potential decisions that the new Fed Chair may enact.
