Bitcoin (BTC) experienced a downward reversal below $87,000 at the start of US trading, following a period of support during the Asian session.
US dollar gains have dampened Bitcoin's momentum, with the dollar index (DXY) reaching a three-week high of 104.46 and acting inversely to BTC/USD.
Uncertainty surrounding US trade policy and the upcoming round of tariffs contributes to volatility. However, Bitcoin may perform well in the short term due to corporate adoption and retail inflows.
Bitcoin broke out of a three-month descending channel, signaling a significant market structure shift according to top trader Titan of Crypto.