Key Points
- Bitcoin shows signs of decoupling from equities, outperforming the S&P 500 with a 3.7% gain.
- Strong support at $95K-$98K and minimal resistance above $104K positions Bitcoin for potential new highs.
Bitcoin, also known as Bitcoin (BTC), has shown early signs of decoupling from the stock market, particularly the S&P 500.
At press time, Bitcoin was priced at $100,839, marking an increase of 1.39% in the past 24 hours and a 7.16% rise in the last week.
Decoupling From Traditional Markets
Analysts suggest that this reduced correlation to traditional markets could signal the start of a new bull market for Bitcoin.
According to data from Santiment, Bitcoin began outperforming the S&P 500 in January 2025.
Bitcoin posted a 3.7% gain in a single day, while the S&P 500 only recorded a 0.4% increase, indicating a divergence.
This could mean that Bitcoin might break away from stock market fluctuations, paving the way for new all-time highs in 2025.
Strong Support and Minimal Resistance
Bitcoin is currently well above a critical support zone between $95,400 and $98,400, where 1.77 million addresses purchased 1.53 million BTC.
This represents a strong demand zone that could prevent significant price declines.
On the other hand, Bitcoin faces minimal resistance, with only 107,000 BTC held by 102,168 addresses between $104,700 and $105,770.
If Bitcoin breaks through this light resistance zone, further upward movement is expected as selling pressure remains limited at higher levels.
Data from Coinglass shows an increase in Bitcoin Futures Open Interest, now at $64.96 billion, up 2.20% daily.
This aligns with Bitcoin’s price rally and reflects heightened speculative activity.
However, rising Open Interest and leveraged positions can increase the risk of volatility.
Despite the risks, with a strong support base and minimal resistance ahead, analysts believe Bitcoin is well-positioned to test new all-time highs if it continues to decouple from traditional markets.
