Bitcoin (BTC) dipped below the key $80,000 level ahead of the weekly close on April 6, having lost 3% since the start of the week amid growing fears of a global market collapse reminiscent of the 1987 "Black Monday." However, crypto traders remain cautiously optimistic, as Bitcoin continues to decouple from traditional markets in the face of economic headwinds.

Stocks are retreating, Bitcoin holds relative strength

U.S. stock indices fell nearly 6% on April 4, losing over $8.2 trillion in market value after President Trump announced sweeping trade tariffs. Commentators likened the week's carnage to the 2008 financial crisis and even the October 1987 crash, with Jim Cramer of CNBC warning that a repeat of the "Black Monday" crash "is not off the table yet."

Meanwhile, Bitcoin fell below $80,000, but analysts noted that this movement was relatively minor compared to the chaos in stocks. At the time of publishing, BTC was trading near $79,700, down only 3% during the week, showcasing its increasing resilience to traditional market disruptions.

"The VIX (Volatility Index) closed at its highest level since the COVID crash in 2020, while Bitcoin volatility shrinks - a rare divergence," noted crypto analyst Daan Crypto Trades. "This sets the stage for a major crypto surge next week."

Analysts are watching Bitcoin's rise to $150,000 - $220,000 as its appeal as a safe haven grows

Despite the short-term bearish outlook, positive sentiment remains high among Bitcoin supporters. Some are anticipating a massive upward movement that could follow this week's volatility:

Max Keiser boldly predicted Bitcoin's price will rise to $220,000 by the end of the month, describing it as "the ultimate safe haven" amid trillions fleeing collapsing financial markets.

Both Crypto Kaiser and Crypto Elite shared charts indicating that Bitcoin may soon start the "final push" of the cycle - targeting $150,000 or more.

BTC price setup: Is it a false slip or a trend shift?

Technical analysts are closely monitoring the weekly Bitcoin structure. The recent drop to $76,000 is being compared to previous "fake-outs," similar to the post-ETF dump in January and the August 2024 correction.

"This is no different from post-ETF crashes and August," said trader Kas Abi. "A weekly close above $92,000 will confirm the bullish trend."

However, some warn that Bitcoin remains susceptible to global macro shocks, especially if U.S. bond market volatility escalates, reminiscent of the "rush to cash" during the COVID-2020 period.

The final outcome

As global markets swing under unprecedented selling pressures, Bitcoin's modest decline below $80,000 seems relatively controlled - a sign of its increasing maturity and safe haven narrative. With suppressed volatility and a strong divergence from stocks, many crypto analysts believe a decisive move is imminent.

Next week's trading sessions - especially for U.S. stocks and treasury yields - will be crucial in determining whether Bitcoin breaks upward or joins the broader risk asset pullback.

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