- Bitcoin Forms Higher Low, Signals Bullish Setup
- BTC Eyes $90K as Gold, Equities Decline
- Weaker Dollar Boosts Bitcoin Momentum
Bitcoin has formed its first higher low during the lower consolidation phase, signaling a possible rally in the coming sessions. The move follows a recovery from a brief drop near $82,500, with prices bouncing back above $84,000. This development is drawing attention as analysts observe growing divergence from traditional markets such as US equities and gold. The pattern resembles previous cycles, where similar structures led to extended uptrends.
Bitcoin Recovery Gains Momentum Amid Broader Market Weakness
Bitcoin’s price rebounded over 4% this week, recovering from losses caused by the recent global tariff announcement by President Donald Trump. Soon after dipping beneath $82,500 the price experienced rapid recovery to reach above $84,000. In contrast, the S&P 500 saw a 10.65% decline, while gold dropped 4.8% after reaching a record high.
Market analysts believe Bitcoin may be entering a new upward phase, supported by its decoupling from traditional assets. Historical data from 2018 and 2019 showed gold moving first, followed by Bitcoin’s breakout. MacroScope, a market analyst, noted, “A reclaim of $100K would imply a handoff from gold to BTC,” suggesting this trend may continue.
Further confidence in the trend comes from Alpine Fox founder Mike Alfred. He referred to past performance data indicating Bitcoin could outperform gold by a large margin, continuing the cycle observed in previous market conditions.
Technical Support and USD Weakness Fuel Bullish Outlook
Bitcoin is currently holding above key technical support near $80,000, which analysts see as a critical area for the next price move. TraderMagus identified the $80,000 and $90,000 levels as essential, with a break above $90,000 likely to confirm further strength.
Meanwhile, the US Dollar Index has dropped 8% since mid-January, creating a more favorable environment for risk assets. Arthur Hayes explained that capital flowing out of US tech stocks and a weaker dollar could benefit Bitcoin. The BTC-to-gold ratio is also testing support, and if it holds, it may help confirm a continued rally.
