The U.South. dollar is starting to weaken over again as sellers are pushing the U.Due south. Dollar Index (DXY) downward, which could strengthen the momentum of Bitcoin (BTC) in the near term.

Alternative assets like Bitcoin and gilded are priced against the dollar. Hence, when the DXY starts to drop, it oftentimes causes BTC to rally against the dollar.

BTC/USD (orange) vs. DXY (green). Source: Tradingview

Dollar'due south share of global reserves is dropping fast

Co-ordinate to Holger Zschaepitz, a marketplace annotator at Welt, the U.S. dollar's share of global reserves is apace failing every bit countries like Russia are pursuing a de-dollarization strategy and opting for gold.

When the pandemic was declared in the first quarter of 2020, the demand for the dollar increased as investors fled to cash because it is the global reserve currency.

Nevertheless, due to diverse factors including the presidential election and the negative outlook on COVID throughout last year, the dollar struggled to outperform other currencies like the Japanese yen and the Swiss franc.

Zschaepitz said:

"OOPS! Dollar in decline. While Dollar's share of global reserves initially increased at get-go of pandemic, it has since decreased & now stands at but 59%—1.5pp decline QoQ & lowest since 1995. Part of pass up due to depreciation, but also due to active USD selling."

If the turn down of the U.Due south. dollar continues, in that location is a strong probability that Bitcoin will go along to rally in April.

Historically, April has been a potent month for Bitcoin throughout the past ten years, recording positive gains for five consecutive years since 2016.

Additionally, Danny Scott, the CEO of the Bitcoin commutation CoinCorner, said that the law of averages puts Bitcoin at $83,000 in April. He wrote:

"Law of averages gives #Bitcoin an $83,000 price target for Apr. Avg over 10 years in April +51%."

Miners announced to be accumulating Bitcoin

Atop the favorable macro factors for Bitcoin, Lex Moskoviski, the CIO at Moskoviski Capital, pinpointed that miners recently began ramping upwards their BTC holdings.

On a single day, miners added 4,380 Bitcoin, which the quantitative trader and investor described as a growing trend. He said:

"Miners started really ramping up their positions. iv,494 #Bitcoin stacked today on aggregate. Another 4,380 #Bitcoin stacked past miners yesterday. Looks similar a trend, indeed."
BTC miner net position change. Source: Glassnode

When miners sell their holdings, Bitcoin typically sees a pullback as it can cause heavily leveraged orders in the futures marketplace to see cascading liquidations.

If miners are hoarding Bitcoin and stacking BTC with the expectations that the cryptocurrency will appreciate, it reduces the probability of a severe sell-off in the foreseeable time to come.

In the near term, whether Bitcoin remains to a higher place the $58,000 support surface area remains key. If it continues to consolidate above it, the chances of it seeing a strong breakout higher up the $60,000 resistance level profoundly increases.