- Bitcoin outperformed the S&P 500 with a gain of 3.7%, showing signs of reduced correlation in the stock market.
- Strong support at $95K-$98K and minimal resistance above $104K positioned BTC for potential new highs.
Bitcoin [BTC] showed early signs of equity decoupling, rising faster than the S&P 500. At the time of writing, Bitcoin was priced at $100,839with an increase of 1.39% in the last 24 hours and an increase of 7.16% in the last seven days.
This marks a significant shift, as analysts suggest that reduced correlation with traditional markets could signal the start of a new bull market.
Bitcoin decouples from the S&P 500
According to SantimentSince January 2025, Bitcoin has started to outperform the S&P 500. While Bitcoin posted a 3.7% gain in one day, the S&P 500 recorded a modest gain of 0.4%, indicating divergence. Santiment on X (formerly Twitter) stated:
“For most of the past three years, cryptocurrency has been seen as a ‘highly leveraged technology stock,’ but current data suggests BTC could break away from the stock market’s swings.”
Source: Santiment
Historically, crypto markets have experienced their strongest bull runs when they have had low correlation to stocks. Analysts believe that if Bitcoin can maintain its momentum and operate independently of macroeconomic factors, it could pave the way for new all-time highs in 2025.
Strong support and minimum resistance levels
Crypto analyst Ali noted that Bitcoin is well above a critical support zone between $95,400 and $98,400, where 1.77 million addresses bought 1.53 million BTC. This cluster of buyers represents a strong demand zone that could prevent significant price declines.
On the upside, Bitcoin is seeing minimal resistance, with only 107,000 BTC held from 102,168 addresses between $104,700 and $105,770. Analysts expect further upside if BTC breaks through this slight resistance zone as selling pressure remains contained at higher levels.
Source:
This positive ratio reflects strong market sentiment as most holders are confident in Bitcoin’s trajectory.
Increasing open interest and market activity
Data from Coin glass shows an increase in Bitcoin Futures Open Interest, now at $64.96 billion, up 2.20% per day. The Open Interest (OI) has risen steadily since mid-2024, in line with Bitcoin’s price rise and reflecting increased speculative activity.
Additionally, trading volume increased 49.82% to $86.96 billion, and options volume increased 76.78% to $3.54 billion, indicating growing trader engagement.
However, rising OI and leverage positions can increase the risk of volatility. The BTC Total Liquidations Chart recorded $17.87 million in long liquidations and $2.95 million in short liquidations last session.
Source: Coinglass
Read Bitcoin’s [BTC] Price forecast 2025–2026
This imbalance suggests that long positions with excessive debt have been wiped out during small price corrections.
With a strong base of support and minimal resistance ahead, analysts believe Bitcoin is well positioned to test new all-time highs if it continues to decouple from traditional markets.