Bitcoin (BTC) entered a stabilization phase at around $84,000 with the opening of the New York stock market on the 16th. With the continued weakness of the US dollar, expectations for a potential rebound in the Bitcoin market are rising again.
According to Cointelegraph Markets Pro and TradingView data, Bitcoin has been maintaining a sideways trend after a sharp decline from its previous high point. This price movement occurred amid intensifying US-China trade tensions, and statements by President Donald Trump increased market sensitivity to risk assets.
Unlike gold, Bitcoin has not been effectively absorbing safe-haven asset demand. Trading firm QCP Capital noted through its Telegram channel that "BTC is still not recognized as a store of alternative value, and market participants are maintaining defensive positions." On this day, gold once again reached an all-time high, breaking through $3,300 per ounce.
Market participants' primary focus is on whether the US dollar's weakness will continue. The US Dollar Index (DXY) remains at its lowest level in years, failing to recover the psychological support line of 100. Trader BitBull stated, "DXY is falling at its fastest pace since 2023" and "a trend similar to Bitcoin's rise of over 200% in 2023 after bottoming out in the second half of 2022 can be detected."
Andre Dragosch, European Research Head at Bitwise, citing Goldman Sachs data, said, "The dollar is still overvalued" and "there is sufficient room for BTC to be reevaluated given the significant potential for dollar decline."
Meanwhile, some professional traders are analyzing that Bitcoin is showing technical rebound signals. Trader Luka said, "Bitcoin is preparing to form an inverse head and shoulders pattern on the 4-hour chart" and "if it continues to make higher highs and higher lows, additional upward potential can be predicted."
Cryptocurrency analyst Michaël van de Poppe analyzed, "Bitcoin is moving stably between two major resistance zones" and "if it retests the $87,000 level, there is a high possibility of a strong breakout." He further predicted that "breaking the all-time high before the end of this quarter is possible."
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