- Bitcoin’s correlation with U.S. stocks has dropped to its lowest level since the FTX collapse in late 2022.
- Bitcoin remains below key moving averages, with support near $64,000 and resistance near $70,000.
Bitcoin’s price relationship with major equity indexes has weakened sharply, falling to its lowest level since the collapse of FTX in late 2022, according to on-chain data from analytics firm Santiment. Over the past six months, the statistical correlation between Bitcoin and U.S. stocks has declined by approximately 43%, a level not seen since the period following the FTX failure.
During this same period, traditional risk assets have performed differently. The S&P 500 index rose about 7%, while the price of gold climbed roughly 51%. By contrast, Bitcoin recorded a roughly 43% decline over the past six months, highlighting a notable divergence in returns across leading asset classes.
Santiment said the current dislocation represents the weakest observed correlation between Bitcoin and stocks since late August, indicating that Bitcoin is currently moving largely independently of traditional equity trends. The firm’s analysis noted that such pronounced breaks in historical correlation “have typically been followed by a reversion” in past cycles.
Bitcoin Price Shows Weakness
This pronounced breakdown in correlation coincides with clear signs of technical weakness in Bitcoin’s price structure. Bitcoin’s price is showing a small recovery but remains weak overall. On the daily chart, BTC is trading around $65,420, after reaching an intraday high of about $66,284.59 and a low near $62,553.19 during the day, gaining about 5%.
But the technical picture is still bearish. The 50-day moving average, currently near 79,672 USDT, is below the 200-day moving average, which is around 98,159 USDT. This “death cross” indicates that the medium-term trend is downward. Bitcoin’s price is also well below both these averages, suggesting that the current rise is not a strong recovery.
The BTC price has been moving within a range between roughly $60,000 and $70,000 in recent weeks. This pattern shows the price is consolidating but still making lower highs, which means sellers are still in control.
Zooming in, the Relative Strength Index (RSI), a momentum indicator, is at 35.26. It has bounced back from oversold levels but remains below the neutral 50 mark, signaling that downward momentum continues.
If BTC maintains the pressure key, near-term support is visible around $63,900–$64,000, followed by the important psychological level of $60,000. A drop below 60,000 could lead to further declines toward 55,000 USDT. On the upside, resistance is expected near 70,000 USDT and then at the 50-day moving average around 79,672 USDT. The 200-day moving average near 98,159 USDT also acts as a major resistance level.
Overall, Bitcoin’s price is in a weak position and shows no clear sign of reversing the recent downward trend.
Source: https://thenewscrypto.com/bitcoin-price-weakens-as-correlation-with-stocks-hits-lowest-since-ftx-collapse/
