Bitcoin’s technical outlook darkens as the Nasdaq index triggers a ‘double top’ pattern, leading to a 2.2% decline on Monday and breaching a crucial support level. This development has heightened short-term bearish sentiments for BTC, resulting in a significant 10% drop in the last 24 hours. The cryptocurrency has now revisited the $82,587 support level marked by the 200-day simple moving average.
Implications of Nasdaq’s Decline on Bitcoin
The Nasdaq’s recent performance, characterized by a double top pattern and a breach of key support, has directly impacted Bitcoin’s trajectory. The correlation between traditional markets and cryptocurrencies is becoming increasingly evident, with BTC mirroring the bearish sentiment in the stock market.
📉 Why Did Bitcoin Crash?
The double top formation on the Nasdaq triggered a sell-off, causing Bitcoin to follow suit and experience a sharp decline. Traders and investors reacted to the weakening technical indicators and the breach of crucial support levels, leading to intensified selling pressure.
⚡ What’s Next for BTC?
As Bitcoin tests the 200-day SMA support at $82,587, the focus shifts to potential bounce levels. If buyers fail to defend this support, a further drop towards $80K or even $75K could be in play. Conversely, a swift recovery above $85K could signal a bullish reversal.
🤔 Should You Buy Bitcoin Now?
For traders eyeing a short-term position, caution is advised as Bitcoin navigates this bearish phase. Monitoring key support levels and volume trends is crucial to assess the likelihood of a recovery or prolonged downturn.
To sum up, Bitcoin faces significant downward pressure following the Nasdaq’s decline, with its technical outlook signaling a short-term bearish trend. The $82,587 support level is a critical area to watch for potential price movements, as the cryptocurrency market remains sensitive to external market influences.
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