Bitcoin Has Finally Started To De-Correlate From US Equities, Signaling A Potential Shift In Market Dynamics

Bitcoin has finally started to change its correlation with US equities, signaling a potential shift in market dynamics.

Bitcoin (BTC) price has finally started to change its correlation with US equities, signaling a potential shift in market dynamics as analysts now call for an aggressive surge if BTC manages to hold current levels and continue pushing higher.

Bulls are feeling increasingly confident after Bitcoin pushed above the critical $90K mark—a pivotal zone that had previously acted as strong resistance during months of consolidation and selling pressure.

However, despite this momentum, high risks of a sharp downturn remain elevated with global trade instability, fueled by ongoing tensions between the US and China, threatening broader financial markets.

This backdrop of fear and volatility has only intensified since November 2024, when US President Donald Trump's re-election bid sparked market turbulence.

But on-chain metrics are cutting a bullish picture, with recent data from crypto analytics firm Glassnode showing that more than 40,000 Bitcoins have been withdrawn from exchanges over the past week.

This trend of investors opting for self-custody is reducing the stifling factor of Bitcoin's circulating supply, a dynamic known to support higher prices in the long run.

Bitcoin Is Now Entering A Critical Phase

Bitcoin is now entering a critical phase, with the next few weeks of price action set to decide the market's direction for months to come.

After a sharp surge that saw BTC push above the $90K mark, bulls have managed to regain a slight foothold.

However, despite this momentum, high risks of a reversal remain as global trade instability continues to dominate macroeconomic narratives. Tensions between the US and China, threating new tariffs and fractured supply chains, are a constant threat to broader financial markets.

While some analysts, like Ben Armstrong, are optimistic, calling for Bitcoin to rally toward new all-time highs (ATH) in the coming weeks, others remain cautious.suggesting that recent strength may be a temporary reaction.

A key signal supporting the bullish view is investor accumulation. Top analyst Ali Martinez recently shared relevant data showcasing that over 40,000 BTC have been withdrawn from exchanges over the past week.

This strong outflow trend suggests investors are increasingly moving their BTC into cold storage, which reduces available supply on trading platforms.

As Bitcoin pivots at critical resistance levels, the coming days and weeks will be pivotal.

A continued surge could confirm the start of a new bull phase, but failure to hold key support zones could lead to another round of volatility as bears attempt to regain control.

BTC Price Update: Bulls Must Defend Critical Level

Bitcoin is currently trading at $93,900, maintaining a strong position after an impressive multi-week rally. However, while bullish momentum persists, it appears that a clean push above the $95K-$96K resistance zone may take additional time.

This range is a critical hurdle, and many analysts expect some consolidation at current levels before we see any decisive breakout attempts.

For now, bulls must focus on defending the key support level to keep the recovery structure intact. Remaining above $88,700—which is roughly aligned with the 200-day moving average—would be a major sign of strength.

This level has become an important pivot point, helping to confirm whether the rally can sustain further upside pressure or if bears could capitalize on a breakdown to spark deeper selling.

If Bitcoin fails to hold above $88,700, it could trigger a steeper correction, with the next significant support zone sitting around $84,000.

A move down to this area would still fit within a broader bullish structure but would delay any attempts at setting new all-time highs.

Overall, the $88,700 level remains the key battleground as bulls must continue defending it.