I noticed an interesting movement yesterday on BTC which climbed to $72,750 with a 1.42% gain in 24 hours, while ETH strengthened to $2,230. This rebound wasn't isolated – stocks and precious metals were also rising. All this followed Trump's statements suggesting that the situation in Iran could be resolved quickly.

What struck me was how the DXY index weakened during this time. The dollar index dropped to 98.5 after reaching 99.7 on Monday. It makes sense actually – when the DXY falls, cryptocurrencies generally rise. The crypto market and the dollar have always had this inverse relationship. If the DXY continues to erode this week, we might see Bitcoin test higher levels.

But honestly, just watching the DXY and daily prices is incomplete. Bitcoin remains technically in a downtrend since October with declining highs and lows. To really break this pattern, BTC needs to return toward $98,000 by establishing solid support along the way.

On the altcoin side, there was quite a bit of movement. Jupiter advanced by 2.74%, ETHFI continued its rebound, and HYPE gained 4.89% to trade at $42.26. The CoinDesk 5 and 10 indices both rose by 4.3%, led by Bitcoin and Ethereum, while the DeFi Select index followed with 4%. Meme coins, meanwhile, lagged with only 2.6% gains.

In derivatives, open interest increased by over 5% for BTC and ETH, suggesting new capital is flowing in. Perpetual funding rates remain slightly positive, indicating a slight bullish dominance. But protective put options are still more expensive than calls, so market makers might be expecting increased volatility if BTC breaks above $75,000.

An interesting detail: Bhutan sold about 70% of its Bitcoin holdings in October, reducing its reserve from 13,000 to 3,954 BTC. It also seems they slowed down or halted their hydroelectric mining operations. This is a notable change for a country that had bet on Bitcoin.

Overall, the DXY index remains the key to watch this week. If the dollar continues to weaken, we could see an acceleration in the upward move. But Bitcoin’s technical pattern suggests that more than a short-term rebound will be needed to truly change the trend.