October 12th 2026, 5:43 AM
DXY Stalls at 18-Month High as Analysts Weigh Bullish and Bearish Scenarios
Key Summary
The US Dollar Index (DXY) reached an 18-month peak, but analysts disagree on whether the rally will stall at a trendline or extend its multi-year uptrend, with implications for digital assets like Bitcoin
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Analysis of the US Dollar Index Rally
The DXY has climbed from roughly 98.8 in early September to above 102, breaking past its July highs near 101.6. This move has sparked debate among analysts, with some expecting a rejection and others a continuation of the uptrend.Macro Implications
Macro strategist Gert van Lagen expects the advance to stall at a trendline the index broke last year. He points to the potential for a bearish retest, which could be bullish for crypto and stocks.Contrarian Views
Sweep, co-founder of GlydeGG, also described the move as a bearish retest. He expects a rejection next, which would be bullish for digital assets.Bullish and Bearish Scenarios
In contrast, another analyst argues that the DXY remains in an 18-year bull market. By his count, the run began at a record low of 70.698 on March 17, 2008. He expects the dollar to strengthen, with direct consequences for digital assets.Implications for Digital Assets
If the dollar rejects at the trendline, one source of pressure on Bitcoin would ease, given that inverse link. A breakout would instead test whether September's resilience can repeat with the dollar at even higher levels.#DXY#US#Crypto#SEC#FedRateHike