Bitcoin's surge has paused at the crucial $90,000 resistance point after a swift $20,000 increase within a week. Prices recently declined to $85,000 as FX traders shift focus to the strengthening dollar index (DXY), which has risen by 2.7% to a six-month high of 106.78. This dollar strength may introduce financial tightening, impacting risk assets like BTC. The market anticipates a breakout toward $110,000-$120,000, but persistent dollar growth could weaken Bitcoin's bullish momentum due to the historical negative correlation between the two. Rising U.S. Treasury yields, particularly on two-year notes reaching 4.36%, add pressure as concerns about inflation arise in light of President-elect Donald Trump's policies. Traders are reportedly hedging in light of the stronger dollar, which typically brings down investments in riskier assets like cryptocurrencies.

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