BTC - DXY Breakdown Could Trigger BTC PumpBitcoin / TetherUSBINANCE:BTCUSDTVIAQUANTIn this chart I will be comparing the DXY (top chart, blue) to BTC (bottom chart, orange). Both charts are on the daily timeframe. Both instruments formed very clean symmetrical triangles on the line chart since late January /early February. Both also saw slight deviations (or false breaks) of their triangles before reclaiming the structure. This is a key distinction, as it created liquidity grabs above the range for the DXY and below the range for BTC. This is the first thing worth noting, because these two charts tend to move inversely to one another for the most part. When the DXY rises, capital typically flows into a risk-off environment and into the dollar itself. When the dollar weakens, market participants tend to shift toward a risk-on posture and rotate out of the dollar into higher risk assets like Bitcoin. Understanding this inverse relationship is key to interpreting what these two charts are signaling together right now. Both triangles have since been reclaimed, and it is most clearly visible on Bitcoin. Three separate times after the deviation, BTC has bottomed right around the bottom of that symmetrical triangle (green arrows). Now for the interesting part. The DXY is showing early signs of breaking down from its symmetrical triangle. There have been no confirmations yet, but with today's price action it is beginning to close below the structure, which could signal a pump for BTC given the inverse relationship outlined above. If this occurs, BTC would likely move back toward the upper line of its own symmetrical triangle on the line chart. At that point in time it will be very important to watch the daily closes for BTC to see whether that upper line produces yet another rejection, or whether price finally has the momentum to break through it. Even if the DXY starts to break down, that move could be short lived. The DXY is about to test major support levels on both the weekly and daily timeframe, which could reverse the trend back to the upside once again. If that happens, it could lead to a rejection for BTC right at that upper trendline, so keep that in mind before assuming the DXY breakdown will be a major one. It could be, but it is way to early to say. Here are the related DXY ideas worth reviewing for these support levels. Watch the white dotted line for weekly closes in this idea: Watch the orange dotted line and black dotted line on the daily in this idea: Watch the middle of the parallel channel on the daily in this idea: