Will the dollar’s weakness result in Bitcoin finally breaking $12,000?

Will the dollar’s weakness result in Bitcoin finally breaking $12,000?

Historically, a weaker United States Dollar leads to strength across other “safe haven” assets. By analyzing the correlation, such momentum and conclusion can also be drawn with Bitcoin (BTC) and the USD.

Bitcoin has gained in 2020 as the U.S. Dollar Currency Index (DXY) has been having a tough year. But will this momentum continue in the coming months? Let’s take a closer look at the charts.

Bitcoin has to hold the $11,000 support level to avoid a CME gap test at $9,600

BTC/USD 1-day chart. Source: TradingView

The triangle broke upward as the majority of the markets were waiting for a climax to occur, resulting in a rally towards $11,700 and the breakthrough of the crucial $11,000-11,200 resistance zone.

However, to sustain the bullish momentum, support has to hold at this $11,000-11,200 area for a test of the $12,000 resistance area to occur.

BTC/USD 1-week chart. Source: TradingView

The weekly chart of Bitcoin is showing the

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