Research Service Ecoinometrics said on Monday that Bitcoin’s (BTC) long -term recovery is closely linked to Nasdaq’s ability to tend to tend to trend and highlight the significant positive correlation between the two.
Unfortunately for Crypto Bulls, Nasdaq triggered a large bearish reversing pattern known as a “double top” Monday, with BTC’s 200 -day simple sliding average (SMA) support in danger.
Bitcoin, the leading cryptocurrency with market value, has fallen over 10% over the last 24 hours and turned Sunday’s price rally to $ 95,000. At one point early today, prices tested the 200-day SMA support for $ 82,587, as shown by data from the Card Platform TradingView.
The 200-day SMA is often considered a key indicator of long-term trends, with price declines below this level is often interpreted as a signal of potential significant losses ahead.
The possibility of BTC’s price moving below the long-term average cannot be excluded as Wall Street’s tech-heavy Nasdaq fell 2.2% Monday, triggering a double top collapse.
The double peak consists of two tops separated by a trough and takes about two to six weeks to form. The gap between the two tops must be equal to or less than 5%, where the spread between the tops and the trough is at least 10%, according to technical analysis theory.
These are guidelines and not rules; The background is more important, which means that the pattern must be displayed after a long -term increase to be valid, as is the case with NASDAQ.
Nasdaq has formed two peaks near $ 22,200 since mid -December, with a trough for $ 20,538. The index ended on Tuesday during the trough support and confirmed the double-top bearish reversing pattern.
Per technical analysis theory the subsequent decline could be at least 70% of the distance between tops and troughs, which means that Nasdaq could go as low as 19,400. The pattern’s historical failure is 11%according to CMT’s analysis books. This means that collapse leads to deeper losses more often than not.
Both Nasdaq and BTC lost Bullish Momentum in December and have since topped to act close to their respective 200-day average.
During the 200 -day SMA, the next support for Bitcoin is seen directly on the previous record high (resistance) -supported support for $ 73,757.
