Alex von Stachelkopf
⬤ The U.S. Dollar Index (DXY) is sitting less than 1% away from a breakdown zone that's lined up with big crypto rallies in the past. The weekly chart shows multiple times when the dollar weakened after hitting similar technical spots, and each time it happened, crypto markets took off.
⬤ Looking at historical patterns, the DXY has rolled over several times after consolidating around these levels. Each breakdown saw declines around 0.6%, and right now the index is hovering near 97—the same area where previous downturns began. The setup today looks almost identical to those earlier moments.
⬤ When the dollar breaks below this zone, it typically signals weaker liquidity conditions globally—exactly the kind of environment where crypto and other alternative assets tend to thrive. With DXY this close to the breakdown level, all eyes are on whether it holds or follows the same pattern we've seen play out over the last decade.
Alex von Stachelkopf
