The research of the research service declared on Monday that the long -term recovery of Bitcoin (BTC) is closely linked to the Nasdaq capacity for upward trend, highlighting the significant positive correlation between the two.
Unfortunately for Crypto Bulls, the Nasdaq triggered an important bearish investment pattern known as “double top” on Monday, putting at risk the simple mobile average support (SMA) of 200 days of BTC.
Bitcoin, the leading cryptocurrency for market value, has fallen more than 10% in the last 24 hours, which invests Sunday’s price to $ 95,000. In an early moment today, prices tested 200 -day SMA support at $ 82,587, as evidenced by the TradingView platform data.
The 200 -day SMA is commonly considered as a key indicator of long -term trends, with a price decrease below this level often interpreted as a signal of possible significant losses ahead.
You cannot rule out the possibility that the BTC price moves below the long -term average, since the Nasdaq Technological Wall Street fell 2.2% on Monday, which caused a double double breakdown.
The double top comprises two peaks separated by a channel and takes approximately two to six weeks to form. The gap between the two peaks must be equal to or less than 5%, with the propagation between the peaks and the channel at least 10%, according to the theory of technical analysis.
These are guidelines and no rules; The backdrop is more important, which means that the pattern should appear after a prolonged upward trend is valid, which is the case with Nasdaq.
Nasdaq has formed two peaks about $ 22,200 since mid -December, with a canal of $ 20,538. The index ended Tuesday below the channel support, confirming the double bearish investment pattern.
According to the theory of technical analysis, the subsequent decrease could be at least 70% of the distance between the peaks and the channel, which means that Nasdaq could arrive as low as 19,400. The pattern’s historical failure rate is 11%, according to CMT analysis books. This means that breakdowns lead to deeper losses most of the time.
Both Nasdaq and BTC lost bullish impulse in December and since then they have extended to trade near their respective 200 -day averages.
Under the 200 -day SMA, the next Bitcoin support is seen directly in the previous Record support (resistance) to $ 73,757.
