BTC Nears Breakout, Relies On Dollar Index Pullback To Continue Rallying

Renowned crypto analyst Dan Gambardello thinks the crypto market is preparing for a significant development after some reasonable consolidation. In a recently uploaded video, Gambardello noted that the Dollar Index is in a critical moment and needs to pull back for the crypto market to rally.

Gambardello explained that the outcome of the Dollar Index behavior will directly impact Bitcoin and cryptocurrencies. According to the analyst, the resulting situation could be significant following the crypto market’s latest consolidation.

In his analysis, Gambardello noted that the Dollar Index needs to drop for the crypto market to resume its rally. He showed that the metric has surged higher in the past few weeks but is currently around a Fibonacci resistance level. He also stated that a sideways or downward consolidation of the Dollar Index would favor Bitcoin.

Using Bitcoin’s monthly chart, Gambardello spotted similarities in the flagship crypto’s current behavior with the last bull cycle and the one before. He highlighted a significant consolidation in the 2016 Bitcoin price going into the halving.

Gambardello cited a Bitcoin consolidation during the 2016 Bitcoin halving after pulling back from a Fibonacci resistance around the bull market doors. However, he spotted a difference in this year’s trend, noting that Bitcoin has already broken above the bull market.

Scaling down to Bitcoin’s weekly chart, the analyst showed a pattern that resembles the BTC behavior from the last cycle. He described how Bitcoin broke above the bull market doors before consolidating significantly.

Merging his observations, Gambardello predicted that Bitcoin would rally if it broke above the upper resistance trendline. If not, the pioneer crypto could drop toward the $65,000 area and continue consolidating. Bitcoin was changing hands at $69,715 at the time of writing, according to data from TradingView.