Bitcoin is showing signs of breaking out of its recent consolidation phase, with prices surging to $87,400 on April 21—the highest level since March 28. The move represents a steady recovery from the cryptocurrency’s early April slump, which saw BTC fall to just under $75,000 on April 9.
In less than two weeks, Bitcoin has gained approximately 16%, closing the gap to its all-time high and narrowing its drawdown to 20%. On April 20 alone, BTC rallied more than $3,000 from a low of $84,000, marking a decisive shift in momentum.
While a 2.4% daily gain may be routine for Bitcoin, analysts note that the asset is now pressing the upper boundary of a multi-week range that began in early March. If the breakout holds, it could signal the start of a renewed bullish cycle—driven by macroeconomic shifts, institutional accumulation, and growing demand for digital assets as a hedge against dollar volatility.
Bitcoin-Gold Correlation Deepens as Dollar Weakens
For the first time in years, Bitcoin and gold appear to be moving in tandem—both rallying in response to macroeconomic instability and a weakening U.S. dollar. According to market commentary from The Kobeissi Letter, the convergence between the two assets signals growing investor anxiety and a shift toward hard assets.
“Gold has hit its 55th all-time high in 12 months and Bitcoin is officially joining the run,” the post stated, highlighting the parallel price action.
The coordinated surge suggests that both markets are responding to the same fundamental driver: a declining dollar and rising global uncertainty.
The U.S. Dollar Index (DXY)—which tracks the dollar’s performance against six major currencies—has fallen by 10% since the start of 2025. Analysts attribute the decline to escalating trade tensions and renewed concerns over central bank independence, which are undermining confidence in the greenback.
With Bitcoin now behaving increasingly like a digital counterpart to gold, the strengthening correlation between the two may mark a new phase in crypto’s evolution—one where digital and traditional safe-haven assets respond in unison to mounting macroeconomic risk.
Bitcoin Breaks Downtrend, Defies Easter Forecasts
Despite earlier predictions that Bitcoin could fall to $83,000 over the Easter weekend—based on exchange order book data—BTC has instead staged a decisive rebound.
On April 19, crypto analyst Rekt Capital observed that Bitcoin not only broke out of its multi-week downtrend but also successfully retested that trendline as new support. This marked the first confirmed trend reversal since the downtrend began.
“Bitcoin hasn’t just broken the Downtrend and successfully retested it as support for the first time since Downtrend formation. But Bitcoin has also been able to sustainably maintain above the Downtrend for a period of several consecutive days now,” Rekt Capital stated.
The confirmation has strengthened bullish sentiment and raised expectations that Bitcoin may soon retest or surpass its previous all-time high.
Quick Facts
- Bitcoin’s price exceeded $87,400 on April 21, its highest point since March 28.
- The rally is fueled by a weakening U.S. dollar and political uncertainty surrounding the Federal Reserve.
- Bitcoin and gold are moving in sync amid rising global economic instability.
- The U.S. Dollar Index (DXY) has fallen 10% since early 2025, boosting demand for hard assets.
