Crypto trader names key factor for bitcoin growth

A popular crypto analyst claims that bitcoin BTC $96,984.21 Bitcoin 2.88% Market capitalization $1.92 trillion VOL. 24 hours $6.22 billion could rise to new all-time highs (ATH) with the help of one key factor.

In a new strategy session, crypto analyst Jamie Coates told his 10,200 followers on the X platform that the largest cryptocurrency asset by market capitalization will reach record highs if the US Dollar Index (DXY) begins a downtrend.

«Bitcoin is stuck with the dollar.

Chart: BTC vs. DXY (inverted).

After the DXY breaks through 99.5−101, support will be marginal to the lower 90s.

In thisscenario, BTC is likely to reach new all-time highs," the crypto expert said.

According to Coates, the main crypto asset is prone to «mid-cycle overheating,» which, in his words, has happened over the past two cycles. However, this time, the analyst expects the pullback to be as short and shallow as in 2016, unlike in March 2020.

«Mid-cycle overheating has been a characteristic feature of the last two bitcoin cycles. This time was no exception. The positioning in the derivatives market was almost insane at the peak of the cycle. The question is whether this pullback will be more like 2016 or 2019. I’m betting on the former,» the trader summarized.

At the time of writing, bitcoin is trading at $ 40,098. The total number of coins circulating on the market is $ 786.2 billion. Traders made daily trading deals worth $ 20.1 billion.