Bitcoin’s been on a joyride, busting past $120,000 like it owns the place. But then profit takers showed up, the buzz cooled off, and the price dipped to about $116,000.

Now, you might be thinking, hey, that’s a bummer, the rally’s toast, right? Nah, not so fast.

Dollar rebound?

Before this mess, Bitcoin was running hot, like an office worker after three cups of espresso, sprinting non-stop since early July.

But summer’s coming, the markets are taking a breather, and people are off on vacation.

Trading’s slowing down, and experts at QCP say a pullback to around $110,000 might actually be a healthy reset, like when your team takes halftime to regroup before dominating the second half.

The dollar index is down 10% this year, sparking some fireworks across USD-led assets, think stocks, gold, and Bitcoin itself.

Still, when you crunch the real numbers adjusting for that weaker greenback, these assets aren’t exactly breaking records.

And there’s chatter about a possible dollar rebound brewing. If that happens, brace yourself, it could knock the wind right out of risk assets like Bitcoin.

Solid base

You see, US inflation’s stubbornly hanging around 2.5%, refusing to drop, and the Fed’s playing coy, talking rate cuts next quarter but keeping everyone guessing.

It’s like waiting for your boss to finally approve that vacation request, you don’t want to hang all your plans on it.

Amid all this, QCP’s got faith. They’re sticking to a bullish Bitcoin outlook, seeing $110,000 not as a defeat but a chance to build a solid base for the next rally leg.

Think of it as tightening the screws before the big breakthrough.

Get ready

And what about Ethereum? This altcoin’s no wallflower at the party. Thanks to moves by big players like SBET diversifying their treasuries and companies piling on ETH, it’s flexing some serious muscle.

Over the past month, Ethereum’s climbed more than 33%, cruising above $3,400.

Market guru Tom Lee’s even betting it’ll smash its 2021 all-time highs soon, fueled by the growing stablecoin market and tokenization of real-world assets.

So, Bitcoin’s current dip isn’t the endgame. It’s a pit stop, a chance to catch breath, shake off the dust, and get ready for another lap.

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