Bitcoin (BTC) is Trading Below a Crucial Demand Zone as Bears Regain Control of the Market

Bitcoin is trading below a crucial demand zone as bears regain control of the market, ending a brief period of optimism and minor upward movement.

Bitcoin price is struggling to stay afloat as bears regain control of the market, ending a brief period of optimism and minor upward movement.

Relative Strength Of Bitcoin Vs S&P 500 Shows Subtle Shift

According to Santiment’s analysis, the S&P 500 and global stock markets took a hit this week. They are grappling with ongoing tariff tensions and rising inflation concerns, impacting financial markets.

The S&P 500, in particular, closed the week with a sharp decrease, plummeting to $5,580—reaching its lowest point since mid-March. In contrast, Bitcoin managed a modest gain of +0.4%, maintaining a market value of approximately $84,300 at the time of writing.

What’s especially notable is Bitcoin’s mild rebound on the 4-hour chart following the stock market’s weekly close. This subtle divergence suggests that, despite macroeconomic headwinds, Bitcoin may be showing early signs of decoupling from traditional equities.

As market volatility continues, Bitcoin’s relative stability could signal growing confidence in its long-term value.

Bitcoin Shows Strength As Price Diverges From Falling Equities

Bitcoin’s price action has shown signs of weakness as bulls struggle to maintain upward momentum. The failure to reclaim key levels leaves BTC vulnerable to further downside unless buying pressure returns.

A recovery phase is urgently needed, especially as broader financial markets continue to reel from trade war fears and rising global tensions. Among risk assets, the crypto market is one of the most impacted, with sentiment shifting in response to macroeconomic instability.

However, despite these challenges, Bitcoin has quietly shown strength relative to traditional financial markets.

At the time of writing, BTC is up about +0.4% for the week, holding a market value of approximately $84,300. In contrast, the S&P 500 experienced a sharp downturn, falling to $5,580—nearly reaching its lowest level since March 13.

This divergence highlights a potential shift in market behavior. A key signal of crypto’s strength is Bitcoin’s mild 4-hour rebound following the stock market’s weekly close. This decoupling from equities, still in its early stages, could indicate growing trust in digital assets as independent stores of value.

In past cycles, especially in 2022, Bitcoin closely mirrored stock market movements. But now, that correlation may be weakening.

These price patterns offer a cautiously bullish sign. When digital assets begin to show strength during periods of global instability—particularly outside traditional trading hours—it suggests growing confidence in their long-term utility.

If global markets stabilize or recover, Bitcoin may already be positioned for a stronger move upward, supported by institutional investors who see the current weakness as a long-term accumulation opportunity. For now, bulls must step up to reclaim key levels and confirm the start of a recovery trend.

Price Action Details: Levels To Hold

Bitcoin is currently trading at $83,800 after several days of consolidation below the key $90,000 resistance level.

Despite holding above short-term support, bulls have yet to regain control of the trend. Momentum has faded, and the longer BTC remains below $85,500—the 200-day moving average (MA)—the more vulnerable the market becomes.

Crucially, a move back above the 200-day MA would signal renewed strength and could ignite a recovery rally toward the $89K-$91K resistance zone. Without it, the current consolidation risks turning into a continuation of the broader downtrend.

Meanwhile, price action is encountering increasing resistance. As long as BTC stays below $85,500, the bears remain in control, and sellers could exert more pressure, potentially pushing the price toward lower demand zones.

On the downside, strong support exists at the $82,000 zone. A breakdown below this level could lead to a dramatic drop as it triggers stop-loss orders.

This move would likely spark panic selling, propelling Bitcoin toward lower demand zones and potentially below the $80,000 mark.