Bitcoin (BTC) and gold (XAU) have diverged over the past 24 hours, with BTC likely feeling pressure from a strengthening dollar index.

The leading cryptocurrency by market value has dropped 2.4% to $121,340, after failing to break through key resistance above $126,000 early this week, according to CoinDesk data. The Coindesk 20 Index has declined over 4% to 4,186 points.

The decline comes as the dollar index, which tracks the greenback's exchange rate against a basket of fiat currencies, rose to 98.90, the highest level since Aug. 5.

Strength in the DXY typically weighs on USD-denominated assets, such as BTC and gold. BTC's price chart suggests scope for a deeper decline to $118,000.

BTC hit record high over $126,000 early this week, as U.S.-listed spot ETFs pulled in over $3 billion i

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