After a week-long consolidation, the Bitcoin price witnessed a sudden inflow during Monday’s U.S. market session to hit $88,203. The buying pressure followed a sell-off in the US dollar, and investors sought a safe haven amid a stock market correction. As the BTC price action reveals a breakout from a 4-month correction, these are potential resistances in the path before buyers see a new high.
Macroeconomic Factors Behind Bitcoin’s Sudden Jump
Apr 21, 2025— The Bitcoin price suddenly jumped 3.4% to $88,200, while its market cap bounced to $1.74 billion. The immediate macroeconomic catalyst for the BTC surge was the weakening of the US dollar following statements from National Economic Council Director Kevin Hassett last Friday.
He stated that President Donald Trump plans to replace Jerome Powell as the Federal Reserve Chair, which accelerated the dollar index (DXY)’s downward trend to 98.182 during Monday’s session.
As a result, capital rotated into traditional safe-haven assets, including gold, which hit a new high of $3,430 per ounce, continuing its upward trend.
Bitcoin recovery also caught the attention of financial observers as it continues to show signs of decoupling from traditional risk assets like stocks. According to Mel Mattison, a financial author, there’s increasing evidence that Bitcoin is breaking its strong correlation with the QQQ index and other risk-on assets. He suggested the BTC is starting to trade more in alignment with gold, acting as a safe haven for investors.
Seeing more evidence tonight of BTC breaking its strong risk-on/QQQ correlation. As I was saying back in January, I think this is the year BTC breaks that correlation and starts trading more in sympathy with gold. https://t.co/eItxmH6LhD
— Mel Mattison (@MelMattison1) April 21, 2025
Thomas Fahrer, co-founder of Apollo, also noted this shift in market sentiment, tweeting, “Bitcoin is pumping while stock futures are trading down. It’s almost like the market is treating it like an alternative financial system or something.”
Bitcoin is pumping while stock futures are trading down. It’s almost like the market is treating it like it’s an alternative financial system or something
— Thomas Fahrer (@thomas_fahrer) April 21, 2025
Bitcoin Price Exits 4-month Correction
In the last two weeks, the Bitcoin price has recovered significantly from $74,588 to $87,824, the current trading value, registering an 18% growth. Amid this upswing, the coin price decisively broke out from the resistance trendline of a bull-flag pattern, which had carried the latest correction since January.
Historically, the pattern is commonly spotted in an established uptrend, and the temporary pullback allows buyers to recuperate the bullish momentum. The BTC price, back above the daily exponential moving averages of 50 and 200, reinforced the improving market sentiment.
If the pattern holds, the post-breakout rally could challenge the immediate resistance of $91,315 and $99,500 before hitting the all-time high resistance of $109,525.
Also Read: Strategy’s $555M Bitcoin Buy: Is $100K Next as Arthur Hayes Turns Bullish?
