TLDR
- Bitcoin price jumped to $87,500, reaching a one-month high
- The surge follows Donald Trump’s hints about firing Fed Chair Jerome Powell, causing the dollar to tumble to a three-year low
- Analysts predict further rallies with some suggesting Bitcoin could reach $200,000
- Exchange netflow has been negative in the past week, indicating reduced selling pressure
- The Relative Strength Index (RSI) at 73 suggests Bitcoin may be entering overbought territory
Bitcoin’s price has surged above $87,500, reaching its highest level in almost a month as the U.S. dollar slumped to a three-year low. The price jump came after President Donald Trump suggested he might fire Federal Reserve Chair Jerome Powell, raising concerns about the central bank’s independence.
The world’s largest cryptocurrency jumped 3.2% to $87,518 on Monday, regaining most of the ground it had lost since Trump’s April 2 announcement of reciprocal tariffs.
Bitcoin had been trading in a stable range between $84,000 and $85,000 for several days before the current price movement. The new business week started on a positive note with the digital asset breaking through key resistance levels.
The surge caught the attention of many crypto analysts and industry participants. Scott Melker, host of The Wolf of All Streets Podcast, told his one million followers on X that Bitcoin has been “breaking through descending resistance from the all-time high.”
Melker suggested that the price needs to move beyond $88,804 “to break the series of lower highs and lower lows.”
Dollar Weakness Fuels Bitcoin’s Rise
The recent price increase appears closely tied to weakness in the U.S. dollar. The Dollar Index plunged to its lowest level since March 2022 amid mounting concerns over political interference in monetary policy.
White House economic advisor Kevin Hassett stated on Friday that Trump and his team were studying the legality of firing Powell. Trump himself wrote in a Truth Social post: “Powell’s termination cannot come fast enough!” while calling for interest rate cuts.
When the dollar’s value falls, investors often seek alternative assets to preserve their purchasing power. Bitcoin, like gold, is viewed as a hedge against currency devaluation.
Gold prices were also trading at record highs on Monday, reflecting similar market sentiment around inflation protection.
Technical Indicators Paint Mixed Picture
Some key metrics suggest that Bitcoin’s price could be on the verge of further increases. The asset’s exchange netflow has been negative over the past week, indicating a shift from centralized platforms toward self-custody methods.
This trend is often viewed as bullish in the short term since it reduces immediate selling pressure on exchanges.
Analyst Ali Martinez recently noted that Bitcoin market peaks have historically coincided with surges in retail activity. He pointed out that the rise from $70,000 to the all-time high of $110,000 in January lacked this retail participation, suggesting the true market top may not yet have been reached.
#Bitcoin $BTC market tops have historically aligned with surges in retail activity. The move from $70,000 to $110,000 lacked that, echoing the late 2021 setup. pic.twitter.com/rVJPUTpXZC
— Ali (@ali_charts) April 18, 2025
Another X user, 0xNobler, believes “the Golden Bull Run” could start this week. They predict Bitcoin has yet to mirror its positive performance from previous bull cycles in 2016-2017 and 2020-2021.
This analyst envisions Bitcoin potentially reaching as high as $200,000. They also forecasted that many altcoins “are set to pump 150-200x.”
Despite the general bullish sentiment, one indicator points to a potential pullback in the near future. The Relative Strength Index (RSI) currently stands at approximately 73.
The RSI is a momentum oscillator that tracks the speed and magnitude of recent price changes. It varies from 0 to 100, with readings above 70 typically considered bearish as they signal the asset may have entered overbought territory.
Broader Economic Factors
Bitcoin also found support from signs of possible tariff negotiations with major U.S. trading partners, including Japan and China.
Trump stated last week that “big progress” was made after meeting with a Japanese trade delegation in Washington. The two nations have opened talks aimed at resolving tensions over U.S. tariffs.
A Bloomberg report indicated that China is open to beginning trade talks with the Trump administration but is demanding that the White House show more respect.
Bitcoin is widely seen as a hedge against both currency debasement and political instability. The token has gained support as confidence in traditional fiat currencies has wavered.
The cryptocurrency market continues to react to these macroeconomic and political developments, highlighting Bitcoin’s evolving role in the global financial ecosystem.
For now, traders and investors are watching key resistance levels around $88,800 to see if Bitcoin can establish a new upward trend or if the current RSI levels will trigger a short-term correction.
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