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Bitcoin Breaks Out Above $87K, Signals Possible End to Consolidation Phase
After weeks of sideways movement, Bitcoin appears to be breaking free from its extended consolidation period, surging past $87,400 on April 21—its highest price point since March 28, according to data from TradingView. The latest move has caught the attention of investors and analysts alike, as Bitcoin climbs more than $3,000 from an intraday low of just over $84,000 the day before.
This rally represents a 16% increase from Bitcoin’s recent local low of just below $75,000 on April 9, close to closing the distance between its present level and all-time high, now a mere 20% away. Although a 2.4% daily increase isn’t that uncommon in the world of Bitcoin, this increase is particularly significant. It drives BTC to the higher end of a channel-bound regime that has characterized its action since early March.
Crypto analyst and trader Scott Melker, who is popularly referred to as “The Wolf of All Streets,” used social media to highlight the asset’s momentum, stating, “Bitcoin is breaking out,” and adding that Nasdaq futures were falling at the same time.
Gold and Bitcoin: A Converging Narrative?
Interestingly, Bitcoin’s recent move is mirroring patterns seen in gold markets. The Kobeissi Letter pointed to this strange correlation, explaining that for the first time in years, both gold and Bitcoin narratives are converging. While gold reached its 55th all-time high during the last 12 months and Bitcoin has now joined the party, many view these assets as indicators of macroeconomic worries, particularly regarding the U.S. dollar’s strength.
“Gold and Bitcoin are signaling that a weaker US Dollar and more uncertainty are coming,” the Kobeissi Letter on X.
The U.S. Dollar Index (DXY), measuring the dollar against a basket of six leading currencies, has fallen 10% since the start of 2025. The fall follows a surge in global trade tensions and an increasingly uncertain economic environment.
Bitcoin Decoupling From Tech Stocks?
The breakout hasn’t escaped institutions’ notice either. Geiger Capital opined, indicating that Bitcoin’s performance, combined with falling tech futures and a weakening dollar, suggests the possibility of BTC decoupling from legacy tech assets.
This step has also taken some bears by surprise. In the lead-up to the Easter weekend, various analysts had predicted a dip as low as $83,000 based on order book trends on exchanges. However, Bitcoin surprised them by mounting a good recovery.
Analyst Rekt Capital observed that Bitcoin not only broke out of its recent downtrend but also successfully retested the trendline as support for the first time since the decline started—a technical bullish sign.
Looking Ahead
As Bitcoin reclaims bullish momentum, many eyes are now fixed on whether this move can sustain itself or evolve into a more extended rally. With increased correlation to gold, a weakening U.S. dollar, and growing macroeconomic uncertainty, the stage may be set for a new chapter in Bitcoin’s 2025 journey.
Could this be the start of a broader altcoin season, too? Only time will tell, but things are certainly heating up.
