“Dollar Index Posts Strong Gains as Bitcoin Price Drops Almost 10% in Seven Days”

The dollar index (DXY), which measures the greenback against other global reserve currencies, posted strong gains on Thursday, nearing monthly highs.

The US dollar rose on Friday, heading for its biggest weekly gain since February.

The euro fell slightly against the dollar to $1.091, after falling the previous day to its lowest level since April 11 of $1.09.

Bitcoin price drop

The price of Bitcoin has dropped significantly by almost 10% in the last 7 days. This decline has raised concerns about the $25,000 support level and whether it will hold.

Traders and investors are watching the market closely to see if the price of Bitcoin (BTC) will stabilize and bounce off this critical level.

Current market sentiment and price action will play a significant role in determining Bitcoin’s future direction and whether the asset can regain its upward momentum.

Since late April, Bitcoin has been trading below the psychologically significant $30,000 level. Investors are grappling with recent banking industry failures and other macroeconomic issues.

Despite the many bank failures in the US, the latest financial crash failed to boost prices and Bitcoin fell below $27,000.

The largest cryptocurrency by market capitalization was down more than 3.5% in the previous day, reaching around $26,150.

On May 10, Bitcoin dipped below $27,000 for the first time since March, then recovered, only to crash again. The US banking crisis seems to have failed to spark a bullish momentum in BTC/USD prices.

On May 11, the token continued its losing streak for the 8th session in a row, hitting an 8-week low. The continued pressure can be attributed to negative developments throughout the crypto industry.

In other words, the flagship cryptocurrency is currently experiencing a significant bearish trend as it has fallen below the critical support level of $26,800.

This downward movement has the potential to continue towards the next support level at $25,450.

On the other hand, if Bitcoin manages to break above the $26,800 level, it could signal a potential upside reversal towards the $28,300 level.