Bitcoin (BTC) Breaks Out of Downtrend, Rallying to Resistance at $94,000

Crypto traders embraced the return of green to the charts this week as Bitcoin (BTC) broke out of the downtrend it’s been trapped in since mid-January

Crypto traders saw green return to the charts this week as Bitcoin (BTC) broke out of the downtrend it’s been trapped in since mid-January, with bulls rallying King Crypto to resistance at $94,000 on Tuesday.

Data provided by TradingView shows that King Crypto largely traded near support at $84,000 throughout last week. Bears made one last attempt to break through the bull support line on Sunday, but were soundly defeated, at which point the bulls took over and proceeded to stampede higher.

BTC/USD 1-day chart. Source: TradingView

Analysts have cited several reasons for BTC’s turnaround, including President Trump’s pressure on the Fed to lower interest rates and concerns about his ongoing trade war, which have led to the US dollar hitting its lowest level since March 2022.

Others have noted that Bitcoin was oversold, saying it was only a matter of time before rising institutional interest and the ‘digital gold’ narrative provided a boost.

While Bitcoin is often compared to gold as a store of value and hedge against inflation, it hasn’t been living up to those expectations over the past few months as gold’s price hit a new record high of $3,500 on Tuesday while BTC continues to trade more than 15% below its high set in January. With gold significantly outpacing Bitcoin in recent months, mirroring a historical bear market signal, some analysts have warned that its value relative to the yellow metal could undergo a 35% drop if the trend repeats itself.

BTC/XAU 1-month chart. Source: TradingView

But according to X user Osemka, the recent move lower in BTC/XAU filled the fair value gap, breaking the downtrend line and potentially setting up a further move higher.

BTC/XAU 1-day chart. Source: X

Osemka suggested that the BTC/GOLD ratio breaking out higher “can really mean only two things. 1) Gold is going more parabolic, but Bitcoin is going to outperform; or 2) Gold is topping and rotation into Bitcoin is taking place.”

But a one-day spike does not make a trend, so it remains to be seen if Bitcoin will continue to recover higher, and how gold will perform moving forward after rallying 35% since the beginning of 2025.

A quick check-in on inflows into spot BTC ETFs suggests that Bitcoin will continue to rally higher, with the US-listed products recording total net inflows of $381 million on Monday and $912 million on Tuesday, levels not seen since Jan. 30.

Dogecoin Shows Signs of Upcoming Rally

One token that has shown a strong correlation with Bitcoin is Dogecoin (DOGE), crypto’s first meme coin.

Like King Crypto, DOGE has been on a steep downtrend, since the middle of January, but it managed to break above that trend this week.

DOGE/USD 1-day chart. Source: TradingView

As shown on the chart above, DOGE is now trading above its 50-day moving average, and if the recent bullish momentum holds, it could soon go on a 90-day-long bull run, according to Trader Tardigrade.

Are you ready for a 93-day $Doge Bull Run?#Dogecoin pic.twitter.com/85T96AwHEv

X user Doge Lord also highlighted that the path DOGE is on mirrors its price history, suggesting a huge surge is imminent.

#Dogecoin keeps forming Parallel Channels each cycle, signaling a huge surge! $DOGE pic.twitter.com/eSmA4q1DtO

According to data from the SEC, there are four Dogecoin ETF filings awaiting approval: the Bitwise Dogecoin ETF, the Grayscale Dogecoin ETF, the 21Shares Dogecoin ETF, and the Osprey Fund Dogecoin ETF.

The filing from Bitwise could potentially receive a response on May 18, which marks the end of the SEC’s 75-day initial review period after the 19b-4 filing, but the regulator has an allotted 240-day review period that could push their ruling until October. A response on the application from Grayscale is due May 21, but it could also be pushed until October.

Whether a DOGE ETF will be approved in 2025 is a topic of discussion, with Polymarket bettors placing the odds at 54%. But that hasn’t stopped the DOGE faithful from remaining bullish, with on-chain data showing an increase of 41.12% in large transaction volume and +34.91% in daily active addresses on Tuesday, and growing calls for $1 DOGE.

It’s only a matter of time before $DOGE reaches a new ATH. Bookmark this