This week, BTC has decreased quite significantly, and many are curious about what the main trigger is. After observing market movements more carefully, I started to see an interesting pattern between the movement of the dollar and Bitcoin.

If we look at the current market anatomy, it turns out that the lowest level of the dollar during this period actually became the peak for Bitcoin. This is no coincidence. The inverse relationship between the dollar and crypto assets is well-known, but this momentum is somewhat different from usual.

What makes it interesting is the timing. When the dollar started to strengthen again last week, BTC was immediately pressured. This indicates that investors are still very sensitive to macro conditions, especially the movement of fiat currencies.

From the price movement anatomy I observed, selling pressure comes from several directions at once. Not only from the strengthening dollar, but also from emerging risk-off sentiment in the global market. This combination creates a perfect storm for Bitcoin.

What’s important to watch now is whether the dollar will continue to strengthen or if there will be a bounce back. If the dollar weakens again, this could be a pretty good buying opportunity for the long term. But if the dollar trend remains strong, BTC might still be under pressure.

I personally am monitoring this position on Gate to see if there are any indications of a reversal. The macro situation still remains the key factor that has the most influence right now.