Bitcoin Eyes 2023-Style Comeback as Goldman Sachs Warns Dollar is ‘Overvalued’
Traders Watch for BTC Breakout Amid Falling U.S. Dollar and Global Market Volatility
Bitcoin is once again at a potential turning point, with analysts pointing to a weakening U.S. dollar as a possible trigger for a powerful rally reminiscent of its 2023 breakout. As global market volatility intensifies amid trade tensions between the United States and China, some investors are positioning for another multi-month Bitcoin bull run.
BTC Consolidates Near $84K as Investors Look for Signals
At the opening of the Wall Street trading session on April 16, Bitcoin (BTC) traded just above $84,000, holding steady after a volatile dip from recent highs. The pullback followed sharp market reactions to ongoing developments in the U.S.-China trade war.
Traditional markets struggled to maintain confidence, with the S&P 500 down 1.4% and the Nasdaq Composite shedding 2.2% at press time. Meanwhile, gold surged past $3,300 an ounce, setting new all-time highs.
Despite gold’s rise, Bitcoin has yet to attract the same “safe haven” demand, according to crypto trading firm QCP Capital.
“Unlike gold, BTC has not caught a safe-haven bid,” QCP wrote in its latest market bulletin. “The ‘alternative store of value’ narrative isn’t gaining traction in the current macro regime.”
U.S. Dollar Weakness Signals Upside for Bitcoin
A major focus among traders is the U.S. dollar index (DXY), which continues to weaken, hovering near multi-year lows after failing to recover key support around the psychologically important 100 mark.
“DXY is dropping at its fastest pace since 2023,” popular trader BitBull posted on X (formerly Twitter), suggesting parallels to early 2023 when Bitcoin rebounded more than 200% following its late-2022 bottom.
“I guess it’s time for BTC to repeat the 2023–24 rally.”
Supporting the bullish case, Goldman Sachs issued research indicating the dollar is still “significantly overvalued”, raising expectations for continued depreciation.
“Lots of room for USD depreciation = upside potential for BTC to re-rate,” wrote Andre Dragosch, European head of research at Bitwise Asset Management.
Chart Patterns Hint at Bitcoin Strengthening
Technically, several analysts note that Bitcoin’s price structure is showing bullish signals. A widely-watched chart pattern, the Inverse Head and Shoulders, appears to be forming on the 4-hour timeframe—a possible indication of a bottom and upcoming breakout.
“If we manage to hold a higher low in the coming days, the pattern confirms,” said trader Luca, pointing to the bullish setup.
Meanwhile, veteran crypto analyst Michaël van de Poppe pointed to the $87,000 resistance level as a key zone to watch.
“Bitcoin is still consolidating nicely between two important levels. A successful retest could lead to a new all-time high before the end of Q2,” he said.
Investor Takeaway: All Eyes on the Dollar and $87K
As 2025 unfolds, Bitcoin’s fate may be closely tied to the strength—or weakness—of the U.S. dollar. With macroeconomic pressure mounting and gold already responding, many believe it’s only a matter of time before Bitcoin follows suit.
If history repeats itself, a prolonged dollar slide could ignite the next phase of Bitcoin’s bull market, just as it did in early 2023.
Still, traders are warned to proceed with caution. Every investment decision should be grounded in careful analysis and awareness of broader economic forces and technical setups.
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