Bitcoin's recent surge to $70,000 has sparked hopes among investors, but on-chain data suggests that the correction may not be over yet. According to CryptoQuant, Bitcoin has undergone its longest period of decoupling from the S&P 500 since 2020, with the cryptocurrency diverging from traditional markets amid geopolitical tensions and macro uncertainty.
The decoupling was triggered by a major liquidation event on October 10, when approximately 70,000 BTC in open interest were wiped out. Since then, Bitcoin has remained under pressure, despite equities initially holding up.
Analysts at More Crypto Online's Elliott Wave analysis suggest that Bitcoin has completed a five-wave decline from its mid-March high, increasing the risk of further downside. The most bearish scenario points to a potential bounce into the $70,500-$74,800 resistance zone before a move lower toward $55,000-$56,000.