Bitcoin (BTC) broke out of a three-month downtrend on the daily chart, marking a pivotal shift in market structure even as U.S. trading hours on March 26 saw renewed selling pressure. BTC briefly dipped below $87,000 following a weak open in U.S. equities and a rise in the U.S. Dollar Index (DXY), which hit a three-week high of 104.46.U.S. Trading, Dollar Strength Spark Sell-OffBTC/USD had traded steadily during Asian hours but mimicked U.S. stock market weakness once Wall Street opened. The S&P 500 and Nasdaq Composite both turned red, weighing on risk assets, while the rising dollar added further downside pressure to BTC.“Uncertainty surrounding U.S. trade policy and the broader political landscape remains front of mind,” said QCP Capital, referencing President Trump’s upcoming April 2 tariff measures that are keeping markets on edge.Despite this macro pressure, QCP remains tactically bullish on Bitcoin, particularly after GameStop’s announcement of adding BTC to its corporate treasury.“The symbolic weight of GME’s meme status could rekindle speculative fervor among retail participants,” QCP added. “Retail flows, if coordinated, have the power to challenge institutional positioning.”Technical Breakout Signals Bullish MomentumOn the technical front, Titan of Crypto, a well-known trader, noted that BTC has broken out of a descending channel that’s capped price action for the past three months.“BTC has just broken out of a 3-month descending channel, signaling a key shift in market structure,” he wrote on X, attaching a breakout chart.This structural breakout aligns with two other key bullish indicators this week:Relative Strength Index (RSI): Showing renewed upward momentum.Hash Ribbon Metric: Signaling miner capitulation is over, historically a bullish cue.Market Sentiment & OutlookWhile Bitcoin’s short-term momentum remains mixed—given low volume and macroeconomic headwinds—the combination of structural breakout, improving on-chain signals, and rising institutional interest suggests upside potential may soon follow.The market will closely watch upcoming developments including:Trump’s tariff rollouts on April 2Reaction to GameStop’s BTC allocationContinued ETF inflows and regulatory updatesBitcoin’s breakout from its 3-month downtrend could be the early confirmation of a new bullish phase, provided macro conditions stabilize and speculative interest from retail investors resurfaces. Traders are advised to watch the $88K–$90K zone for confirmation of sustained upside momentum, according to Cointelegraph.
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