- Bitcoin outpaced the S&P 500 with a 3.7% gain, showing signs of reduced stock market correlation.
- Strong support at $95K-$98K and minimal resistance above $ 104K positioned BTC for potential new highs.
Bitcoin (BTC) appears to be moving independently of the stock market, climbing higher than the S&P 500. At the moment of this report, each Bitcoin was valued at approximately $100,839, marking a 1.39% rise within the last day and a 7.16% growth over the past week.
This change is significant because experts believe it might indicate the beginning of a fresh bull market, given its decreased link with conventional market trends.
Bitcoin decouples from S&P 500
As of January 2025, Bitcoin appears to have surpassed the S&P 500 in performance. In one day alone, Bitcoin saw a 3.7% growth spurt, while the S&P 500 managed only a slight 0.4% rise. This difference suggests a divergence in their trends, as reported by Santiment on their platform (previously known as Twitter).
Over the last three years, cryptocurrency, particularly Bitcoin, has often been viewed as an equivalent to high-risk technology stocks. However, recent figures indicate it might start behaving independently of the ups and downs in the stock market.
Previously, the cryptocurrency market has seen its most significant growth spurts when it’s not closely tied to stock markets. Experts speculate that if Bitcoin can maintain its current pace and operate independently from broader economic conditions, it might lead us to new record highs by 2025.
Strong support and minimal resistance levels
crypto expert Ali pointed out that Bitcoin has surpassed a crucial support area ranging from approximately $95,400 to $98,400. Within this region, about 1.77 million accounts have accumulated around 1.53 million Bitcoins. This substantial group of buyers indicates a robust demand zone that might hinder major price drops.
On the positive side, Bitcoin encounters little obstruction, as approximately 107,000 Bitcoins are held by 102,168 accounts within the price range of $104,700 to $105,770. Financial experts anticipate continued upward momentum if Bitcoin surpasses this relatively weak resistance barrier, since selling pressure remains low at higher price levels.
The favorable proportion indicates a robust optimism towards the market, since the majority of Bitcoin owners seem assured about its future direction.
Rising Open Interest and market activity
According to Coinglass data, the Bitcoin Futures Open Interest has risen to $64.96 billion, marking a 2.20% daily increase. The Open Interest (OI) has been gradually escalating since mid-2024, mirroring the rise in Bitcoin’s price and indicating intensified speculative activity among investors.
Moreover, the trading volume significantly increased by 49.82%, reaching a total of $86.96 billion, while options volume experienced a substantial growth of 76.78%, amounting to $3.54 billion. This suggests that trader activity is on the rise.
On the other hand, an uptick in Open Interest (OI) and highly leveraged positions can potentially amplify market volatility. In the recent trading session, the Bitcoin Total Liquidations Chart indicates that there were long liquidations amounting to $17.87 million and short liquidations of $2.95 million.
Read Bitcoin’s [BTC] Price Prediction 2025–2026
This imbalance suggests that overleveraged longs were wiped out during minor price corrections.
Analysts predict that, given its robust backing and little opposition on the horizon, Bitcoin could challenge fresh record levels as long as it maintains its independence from conventional financial markets.
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2025-01-08 11:06