Cryptocurrency expert Jamie Coutts suggests that a key indicator signaling Bitcoin's potential summer rallies might soon turn bullish for BTC. Coutts highlights the dollar index (DXY), which gauges the US dollar's strength against other major currencies, as a crucial metric for Bitcoin's performance.

Traditionally, the DXY tends to move inversely to risky assets, rising during their downturns and falling during their upswings. Coutts notes that historical data indicates a pattern: every summer surge in Bitcoin's value has coincided with a weakening DXY.

Coutts emphasizes the significance of monitoring the DXY to gauge whether this trend will persist. He explains that preceding each BTC summer rally, the dollar index initially strengthens before peaking and subsequently declining, propelling Bitcoin prices upward.

Currently, the DXY is locked within a narrow range of consolidation. Coutts suggests that a breach below the 101 threshold could potentially trigger a substantial Bitcoin rally. A move above 107-108 in the DXY, however, could exert significant pressure on all risky assets.

Should the DXY plummet below 101, Coutts anticipates a decline to the low 90s, a scenario that historically correlates with Bitcoin soaring to $150,000. Presently, Bitcoin is valued at $67,759.

In essence, Coutts' analysis underscores the importance of the dollar index in predicting Bitcoin's movements, suggesting a potential rally if historical patterns hold true.