Something Else Is Moving Bitcoin — Here’s What The Charts Reveal

Bitcoin’s latest pullback has little to do with crypto-native flows and everything to do with the dollar, according to chief crypto analyst at Real Vision Jamie ￰0￱ two charts on X, Coutts argued that a rebound in the US Dollar Index (DXY) is briefly tightening global liquidity and pressuring risk assets across the board. “Bitcoin’s dip isn’t mysterious — it’s macro,” he ￰1￱ Is Bitcoin Down? “The dollar’s rebound is tightening global ￰2￱ is retesting 100–101 — a key resistance and natural mean-reversion zone after one of the sharpest declines in decades in ￰3￱ had become crowded on the short side, so a bounce was always ￰4￱ real question: is this the start of a new dollar cycle or just the setup for the next leg lower?

Base case: liquidity tailwinds and an improving business cycle keep the outlook for risk assets bullish into mid-2026,” he ￰5￱ Reading: Bitcoin’s Rally Still Looks Intact, CryptoQuant Says: Here’s Why The first chart he shared juxtaposes the USD COT Index with the US Dollar ￰6￱ a prolonged slide in 1H25, speculative positioning flipped aggressively against the dollar, with the COT index sinking into negative territory in ￰7￱ capitulative stance created fertile conditions for a counter-trend ￰8￱ price panel shows DXY clawing back toward the 100-101 area—a zone that lines up with prior congestion and the underside of this year’s breakdown—while the COT bars remain below zero, consistent with short-covering dynamics rather than a fully rebuilt long-dollar consensus.

Coutts’ second chart overlays the Global Liquidity Index with the inverse of ￰9￱ series track each other closely: when the dollar weakens (inverse DXY rises), the global liquidity proxy rises too, historically coinciding with stronger performance for duration-sensitive risk assets such as equities and ￰10￱ Reading: The Old Bitcoin Rules No Longer Apply, Arthur Hayes Warns Over recent weeks, the white liquidity line has rolled over modestly as the blue inverse-DXY line has done the same, illustrating the transmission mechanism Coutts highlights: a firmer dollar equals tighter global dollar liquidity at the margin, which in turn dents risk appetite and crypto ￰11￱ This Means For BTC Price Framed this way, Bitcoin’s slip is a straightforward function of FX mean reversion and futures positioning, not a breakdown in crypto’s structural ￰12￱ “crowded short” in dollar futures telegraphed vulnerability to a bounce, and the mean-reversion target around 100–101 offered a logical waypoint for that ￰13￱ DXY stalls and resumes lower from that band—consistent with the broader 2025 downtrend—liquidity conditions would likely ease again, restoring the bid under high-beta assets.

If, instead, the index pushes through and holds above that zone, Bitcoin would be contending with a more durable dollar impulse and a slower return of positive liquidity momentum. Coutts’ “base case” remains constructive despite the near-term headwind: an improving global business cycle and continued liquidity tailwinds into ￰14￱ that framework, Bitcoin’s drawdowns on dollar strength look cyclical, not ￰15￱ immediate pivot point sits in plain view on his charts: the DXY’s 100–101 retest, born from stretched speculative shorts and classic mean reversion, is dictating BTC’s temperature for ￰16￱ press time, Bitcoin traded at $121,703. Featured image created with DALL.

E, chart from ￰17￱