Bitcoin Breaks Out, Surging Past $87K: A Technical Analysis

Bitcoin has surged above $87,400 as of April 21, following a gain of 16% from its April 9 low of $75,000. The price movement marks the highest level since late March and suggests potential breakout characteristics while decoupling from USD and tech futures. Analysts observe alignment with gold’s recent all-time highs, indicating a potential period of uncertainty ahead.

Bitcoin is currently exhibiting a significant price surge, soaring above $87,400 on April 21, marking its highest value since late March, as per TradingView data. This uptick follows a notable recovery from an intraday low of approximately $84,000 recorded on April 20, resulting in a more than $3,000 increase. Notably, since its recent low of just below $75,000 on April 9, Bitcoin has experienced a 16% rise, with only 20% remaining before it reaches its peak price.

Despite a typical daily gain of 2.4%, Bitcoin’s current price movement places it at the upper limits of a range-bound channel that has persisted since early March. Analyst Scott Melker, known as “The Wolf Of All Streets,” identified this breakout, especially as Nasdaq futures were found to be down by 1% simultaneously. The Kobeissi Letter highlighted an aligning narrative between gold and Bitcoin, noting Bitcoin’s recent escalation alongside gold’s historic price levels.

Gold has reached its 55th all-time high within the past year, coinciding with Bitcoin’s resurgence. Observations from the Kobeissi Letter indicate that both assets are signalling an impending period of uncertainty linked to a weakening US Dollar. The US Dollar Index (DXY), which evaluates the dollar against a group of six major currencies, has seen a 10% decrease since the beginning of the year, alongside heightened global trade tensions.

Furthermore, Geiger Capital noted the significant movements in both tech futures and the US dollar, implying that Bitcoin is “decoupling” from its prior correlations with these assets. This sentiment was reflected in various updates, including the fact that tech futures have also been declining, the dollar is diminishing, and gold is reaching new all-time highs—all while Bitcoin is breaking out.

Contrary to predictions from some analysts expecting Bitcoin’s price to fall to $83,000 over the Easter weekend, the cryptocurrency has instead defied these projections. Analyst ‘Rekt Capital’ remarked on April 19 that Bitcoin has effectively broken its downtrend and established this downtrend as a support level for the first time since it emerged.