Bitcoin is starting to exhibit signs of a potential breakout following a surge in market volatility observed on Monday. According to Santiment data, the term “decoupling” has been mentioned more frequently than ever across platforms like X, Reddit, Telegram, and 4Chan.
In just a span of two days, the stock market experienced a 10% decline, leading to a burgeoning narrative that cryptocurrencies might be close to decoupling from conventional financial markets. This concept suggests that digital assets are increasingly becoming resilient to macroeconomic shocks, particularly from U.S. tariffs.
Between April 3 and April 5, the cryptocurrency community started exploring the potential impacts of tariffs concerning Chinese imports. As Bitcoin maintained its stability amidst stock market declines, the confidence of bulls in the asset’s ability to operate independently of Wall Street’s turmoil increased. This hypothesis is further supported by Bitcoin’s historical performance.
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Previous bull cycles frequently took place when Bitcoin and traditional stocks exhibited little to no correlation, indicating that they were not moving in unison or opposition. If this trend continues, such separation could create a promising backdrop for a rally. Data from IntoTheCryptoverse shows that Bitcoin’s 60-day volatility is currently low, resting at 2.8%.
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Historically, low volatility has been seen as a precursor to significant price shifts, often interpreted as a sign that the market is gearing up for a major move. It’s the calm before the storm, so to speak. Currently, Bitcoin is hovering around the $83,000 level on the charts, facing resistance from moving averages while consolidating within a narrow range.
Traders are preparing for a potential spike in volatility as technical indicators suggest a compression phase, and social sentiment reflects optimism. It remains uncertain whether this breakout will be bullish or bearish. However, one thing is clear: as Bitcoin gathers momentum, a storm is brewing on the horizon.
