BTC attempts rally as dollar decline accelerates

Bitcoin BTC$89,142.31 caught a very modest bid on Tuesday as the U.S. dollar fell to new multi-year lows following remarks by President Donald Trump

Speaking to reporters ahead of a scheduled speech in Iowa, the president said the dollar is doing great and that he wasn’t concerned about the greenback’s recent declines.

Already falling over the past week and down sharply again on Tuesday, the U.S. dollar index (DXY) tumbled further following the president’s comments to 95.80, its weakest level in about 4 years.

After languishing below $88,000 during most of the session, bitcoin advanced to $89,300, up 2.2% over the past 24 hours. Ethereum’s ether ETH$3,008.34 bounced above $3,000, higher by 3.9%.

In the middle of a pause following its breathtaking rally above $5,000 per ounce, gold resumed its move higher on the weaker dollar, pushing to a new record of $5,215, up 1.8% for the session.

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BTC bounce to $95,000?

While crypto’s short-term outlook remains challenged, some technical analysts see signs of an incoming reversal.

According to Bitcoin Vector, the research service from Swissblock and well-known analyst Willy Woo, a significant bullish divergence is forming between bitcoin’s price and its RSI momentum indicator. Similar setups have historically yielded returns of around 10%, the team noted.

“We are likely at the genesis of a major bullish reversal,” said Bitcoin Vector. “A return to $95,000 is looking likely.”