Bitcoin Breaks $87K: Is a Bigger Rally Brewing?

Bitcoin Surges Past $87K: Breakout Momentum Builds as Gold and Dollar Shift Align

Bitcoin is making waves again, and this time it’s pushing through key resistance as it crosses back over $87,000 a level not seen since late March. The world's largest cryptocurrency appears to be breaking out of a month-long consolidation pattern, giving bulls a reason to cheer after weeks of sideways trading.

A Steady Climb Since April’s Dip

After dipping below $75,000 in early April, Bitcoin has clawed its way back rising more than 16% from its 2025 low. On April 21, the price surged past $87,400, according to TradingView, marking a $3,000 jump from the prior day’s low.

While daily price swings of 2-3% are routine for Bitcoin, this particular gain is noteworthy because it brings BTC to the upper edge of its range-bound channel that began in March. A decisive breakout could spark renewed bullish momentum and bring fresh liquidity into the market.

Crypto analyst Scott Melker, known as The Wolf Of All Streets, was quick to point out the timing. “Bitcoin is breaking out,” he wrote on X (formerly Twitter), even as Nasdaq futures slipped by nearly 1%, a signal of Bitcoin decoupling from traditional markets.

Bitcoin and Gold: Unlikely Allies?

What’s even more intriguing is Bitcoin’s growing correlation with gold, which also recently marked its 55th all-time high in the past 12 months. According to the Kobeissi Letter, “Gold and Bitcoin are aligning for the first time in years.”

Historically seen as rivals gold the classic safe-haven, Bitcoin the digital disruptor, the two assets now seem to be responding to the same macroeconomic cues: a weakening U.S. dollar and rising global uncertainty.

The U.S. Dollar Index (DXY), which measures the greenback against a basket of six major currencies, has fallen 10% year-to-date. This sharp drop is being blamed on mounting global trade tensions, inflation uncertainty, and mixed economic signals out of the U.S.

Both Bitcoin and gold thrive in environments where the dollar struggles. As geopolitical instability grows, investors increasingly look toward non-sovereign stores of value and BTC is firmly back on that radar.

Technicals Suggest a Strong Retest

Chart watchers are equally optimistic. Prominent analyst Rekt Capital highlighted a pivotal development on April 19: Bitcoin didn’t just breach its recent downtrend, it also retested that trendline as new support for a textbook breakout pattern.

“Bitcoin has officially broken the downtrend and retested it successfully. That’s a bullish confirmation,” Rekt Capital noted.

Other crypto firms like Geiger Capital observed similar technical movements, emphasizing how BTC is starting to decouple from tech stocks, which have seen declining futures amid cautious macro sentiment.

Short-Term Forecast: All Eyes on $90K

Many analysts had predicted a pullback toward $83,000 over the Easter weekend, largely based on exchange order book data. But Bitcoin appears to have shrugged off that expectation, rallying sharply instead.

The next resistance level lies near $90,000. This round number not only holds psychological importance but also aligns with historical Fibonacci extensions and whale accumulation zones.

Fundamentals Fueling the Rally

Behind the scenes, Bitcoin’s fundamentals remain strong. Here’s a look at some of the forces supporting the current rally:

- Institutional Demand: Large entities continue to accumulate BTC, as seen in rising wallet addresses holding over 1,000 BTC.

- Halving Buzz: The next Bitcoin halving, expected in mid-2025, is already making headlines. Historically, halvings lead to major bull runs as supply tightens.

- Geopolitical Risk: Unrest in key regions and U.S.-China tensions are driving investors toward alternative assets.

- ETF Momentum: Spot Bitcoin ETFs continue to draw inflows, with BlackRock and Fidelity both reporting strong early performance in 2025.

In-Depth: Bitcoin vs. Dollar Outlook

The dollar’s downturn is becoming a central theme in Bitcoin’s latest rally. While the U.S. Federal Reserve had hinted at possible rate cuts earlier this year, inflation data and employment reports have complicated that timeline.

However, foreign exchange traders continue to price in a softer dollar, especially with rising deficits and trade protectionism policies weighing on sentiment. A continued slide in the DXY could open the door for BTC to test and breach new all-time highs.

This mirrors 2020-2021 market behavior, when monetary expansion and a weak dollar propelled Bitcoin from $10K to over $60K in just months.

Final Thoughts

Bitcoin is showing real signs of strength as it breaks through $87,000 its highest since March. With a confirmed trend reversal, growing correlation with gold, and a falling U.S. dollar, BTC appears well-positioned for further upside. The next few weeks could determine whether Bitcoin is truly ready to challenge its all-time high or if another cooldown is in store.

Keep an eye on technical resistance zones, dollar movements, and macro triggers. But for now, bulls have regained control.

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