Bitcoin is beginning to show signs of an imminent breakout following a potential spike in market volatility on Monday. Santiment data shows that the term “decoupling” has been used more than ever on websites such as X, Reddit, Telegram, and 4Chan.
In just two days, the stock market fell 10%, sparking a new narrative that cryptocurrencies could be separated from traditional financial markets. The concept is that digital assets are becoming increasingly resistant to macroeconomic shocks, particularly US tariffs.
Between April 3 and April 5, the cryptocurrency community began to discuss the potential impacts of tariffs related to Chinese imports. When Bitcoin remained stable as stocks declined, the Bulls' faith created the belief that assets could function independently of Wall Street's panic. This theory has gained more support from Bitcoin's past performance.
Previous bull cycles often occurred when there was little correlation between Bitcoin and traditional inventory. This means they are not moving towards each other. If that continues, this separation could be a good place for gatherings. Bitcoin's 60-day volatility remains relatively low at 2.8%, according to data from IntotheCryptoverse.
Usually, low volatility precedes significant price fluctuations, which has historically been interpreted as indicating that the market is preparing for a major move. It's quiet before the storm. Bitcoin has swung the $83,000 mark on the chart, testing moving average resistance and consolidating it in a small range.
Traders are preparing for a major surge in volatility, as technical indicators point to the compression stage and social sentiment shows optimism. It's not clear whether that breakout is bullish or bearish. But one thing is certainly true. When Bitcoin gains traction, a storm is on the horizon.
