Bitcoin Faces A Negative Correlation Trend And Still Holds Strong — Here’s Why

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. In the turbulent and often unpredictable world of financial markets, asset correlations can dictate fortunes, creating either synergistic gains or painful downturns. Bitcoin is once again proving its resilience as it navigates a difficult period of negative market correlation. How Macro Pressure Failed To Break Bitcoin Market Structure

Bitcoin is dealing with one of the most frustrating correlations in the market and is still surviving. CryptosRus has notedon X that BTC and Nasdaq are moving together, but BTC is reacting more to drops than to pumps. Wintermute pointed this out in their latest market report, and it’s exactly the type of pattern you normally see near macro bottoms, not near the top of a cycle. Related Reading Why Is Bitcoin Price Crashing? Arthur Hayes Isn’t Surprised 15 hours ago

The incredible part of this trend is that BTC has already hit multiple all-time highs (ATHs) this year. BTC is still trading roughly 25% off the peak while carrying a correlation dynamic that showshow strongly it has been holding upward. BTC’s correlation with Nasdaq | Source: Chart from CryptoRus on X

It’s becoming increasingly clear that Bitcoin is on track to close the CME gap today, and the broader market context supports that move. The CIO and founder of MNFund and MNCapital, CryptoMichNL, has offeredinsight into crypto sentiment using the Fear and Greed Index, which shows an impression of the current state of the market comparable to previous occasions. This index is currently sitting at a 14 out of 100 level.

The last time this level occurred was February2025, right before BTC delivered a 20% decline in a month, and in June 2022, which marked a low during the Luna collapse. This shows exactly what the current market structureis, a pattern that doesn’t last long.

CryptoMichNL concluded that it feels brutal when the broader crypto market and BTC are crashing simultaneously, but these phases do not last forever. That’s why patience is the most profitable strategy. Trend Reversal Strengthens As Price Moves Toward Support Zones

Bitcoin is now moving directly into two major liquidity pockets, and these zones are likely to act as short-term support as the market searches for direction. An analyst known as Stockmoney Lizards has revealedthat the BTC liquidation heatmap is signaling a heavy cluster of long liquidations between $80,000 and $90,000. Related Reading Bitcoin Slides Deeper Into Red, Extending Decline Toward Key Support Zones 1 day ago

At the same time, there is a CME true gap between the $92,000 and $92,500 region with no wicks. Meanwhile, BTC has already broken below the weekly supertrend and the weekly EMA50, confirming that momentumhasn’t flipped and BTC is still in a correction phase. Stockmoney Lizards noted that from here, the $90,000 is the natural bounce zone, and we will see if the bounce will manage to ignite a breakout to the upside, or if BTC can continue sliding toward the mid-$80,000 range. BTC trading at $91,514 on the 1D chart | Source: BTCUSDT on Tradingview.com Featured image from Pngtree, chart from Tradingview.com