Research service Ecoometrics are stated It was Monday that the long -term recovery of Bitcoin (BTC) was closely tied to NasdaQ’s ability to climb upward, featuring significant positive relationship between the two.
Unfortunately for the crypto bulls, Nasdaq triggered a major reflection pattern known as a “double top” on Monday, putting the 200-day simple moving average (SMA) support at BTC.
Bitcoin, the leading cryptocurrency according to the market value, dropped more than 10% in the past 24 hours, reversing the week price rally to $ 95,000. At one point in advance today, prices tried the 200-day SMA support to $ 82,587, as the data show from the Charting Platform TradingView.
The 200-day SMA is generally regarded as a key indicator of long-term trends, with a price decline below this level often interpreted as a signal of potentially significant losses ahead.
The possibility of BTC prices moving under the long-term average cannot be ruled out, as Wall Street’s heavy NASDAQ has fallen 2.2% Monday, prompting a double top damage.
The double top consists of two peaks separated by a trough and lasts about two to six weeks to form. The interval between the two peaks should be equal to or less than 5%, with a prevalence between the peaks and the trough is at least 10%, according to technical analysis theory.
These are the rules and not policies; The backdrop is more important, which means the pattern should appear after a prolonged exit to be valid, which is the case with the NASDAQ.
Nasdaq has formed two peaks near $ 22,200 since mid -December, with a trough of $ 20,538. The index ended Tuesday below the trough support, confirming the double top bearish pattern.
Each technical analysis theory, the subsequent decline can be at least 70% of the distance between the peaks and the trough, which means the NASDAQ may be less than 19,400. Pattern pattern failure rate is 11%, according to CMT’s Assessment books. This means that breakdowns lead to deeper losses more often than not.
Both Nasdaq and BTC lost the bullish momentum in December and since leading trading near their averages of 200 days.
Below the 200-day SMA, the next support for Bitcoin is seen directly at the former record high (Resistance) -Turned-Support at $ 73,757.
