Bitcoin (BTC) Storm Approaching: Volatility Gets Ready
April 6, 2025
Bitcoin is beginning to show signs of an impending breakout following Monday’s potential spike in market volatility. Santiment data indicates that the term “decoupling” has been used more often than ever before on websites such as X, Reddit, Telegram and 4Chan.
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In just two days the stock market fell by 10%, sparking a new narrative that cryptocurrency might be on the verge of decoupling from traditional financial markets. The notion is that digital assets are becoming increasingly resistant to macroeconomic shocks, particularly U.S. tariffs.
Between April 3 and April 5, the cryptocurrency community began discussing potential effects of tariffs in relation to Chinese imports. When Bitcoin remained stable as stocks declined, bulls’ faith that the asset can act independently of Wall Street panic grew. This theory gains more support from Bitcoin’s past performance.
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Earlier bull cycles often occurred when Bitcoin and traditional stocks had little to no correlation, meaning they were not moving in tandem or against each other. If it goes on, this detachment could be a suitable location for a rally. As per data from IntoTheCryptoverse, Bitcoin’s 60-day volatility remains relatively low at 2.8%.
Since low volatility usually precedes significant price swings, it has historically been interpreted as an indication that the market is preparing for a big move. It is quiet before the storm, you know. Bitcoin is circling the $83,000 mark on the charts, testing moving average resistance and consolidating in a small range.
Traders are bracing for a big spike in volatility as technical indicators point to a compression phase and social sentiment indicates optimism. Whether that breakout is bullish or bearish is not clear. But one thing is for sure: As Bitcoin gains traction, a storm is on the horizon.
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