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- Bitcoin breaks above $87,400, signaling a potential breakout after weeks of sideways movement and a 16% gain from its April low.
- Technical indicators turn bullish, with BTC testing and holding key resistance levels, defying earlier correction forecasts.
- Bitcoin and gold rally in tandem, reflecting investor response to a weakening U.S. dollar and heightened global uncertainty.
Bitcoin has finally shaken off weeks of sideways action, surging past $87,400 to reach its highest level since late March, signaling what analysts say could be the beginning of a broader breakout.
According to data from TradingView, Bitcoin climbed sharply on April 21, jumping over $3,000 from an intraday low of just above $84,000 on April 20. The asset has now gained more than 16% from its 2025 low of just under $75,000, recorded on April 9, narrowing the gap from its all-time high to around 20%.
While a 2.4% daily gain might seem modest in the context of Bitcoin’s historical volatility, it marks a critical technical move: BTC has reached the upper bounds of a range-bound pattern that has defined much of its price action since early March. Traders and analysts alike are closely watching this potential breakout for signs of sustained upward momentum.
Scott Melker, better known in the trading community as “The Wolf Of All Streets,” noted the significance of the move: “Bitcoin is breaking out,” he said, pointing out the divergence with broader equities markets, as Nasdaq futures dipped 1% in early Monday trading.
Bitcoin and Gold Align in Market Rally
This divergence has captured the attention of market observers who see a potential decoupling between Bitcoin and traditional risk assets. The Kobeissi Letter, a widely followed macroeconomic commentary outlet, drew parallels between Bitcoin and gold, highlighting how both are responding similarly to the macro backdrop.
“The narrative in both gold and Bitcoin is aligning for the first time in years,” the outlet posted on X, referencing gold’s recent run to record highs.
They added, “Gold has hit its 55th all-time high in the past 12 months, and now Bitcoin is officially joining the run. Both assets are signaling that a weaker U.S. dollar and heightened global uncertainty may be here to stay.”
Indeed, macroeconomic conditions appear to be fueling the rally. The U.S. Dollar Index (DXY), which tracks the greenback against a basket of major currencies, has slipped 10% since the start of the year. The decline is being attributed to escalating global trade tensions, dovish monetary expectations, and growing investor concern over long-term fiscal imbalances in the U.S.
Geiger Capital also weighed in on the move, noting the simultaneous pressure on tech futures and the dollar.
“Bitcoin is decoupling,” the firm stated, suggesting the asset is beginning to act independently of traditional markets, a trend that many long-term holders have been anticipating.
Bitcoin Breaks Out as Analysts Miss the Mark
This recent rally also proved skeptics wrong. Heading into the Easter weekend, several analysts predicted a correction toward $83,000 based on exchange order book data. However, Bitcoin’s resilience proved otherwise. On April 19, popular analyst ‘Rekt Capital’ pointed out that not only had Bitcoin broken above a descending trendline, but it had also successfully retested it as support—a textbook signal of a potential trend reversal.
With the halving event just days behind us and momentum building, Bitcoin’s breakout from consolidation could mark the start of a new bullish chapter. Analysts will now be watching whether this move can hold and extend, particularly in the face of ongoing macroeconomic uncertainty and shifting market correlations.
Related | Ethereum Under Pressure as Peter Brandt Warns of Potential Drop to $800
