Nasdaq triggers a "double top" pattern, Bitcoin's 200-day SMA support at $82,587 is under threat
Odaily Planet Daily reports that Ecoinometrics research services indicate a significant positive correlation between the long-term recovery of Bitcoin (BTC) and the performance of NASDAQ. However, NASDAQ triggered a "double top" pattern on Monday, which means that Bitcoin's 200-day simple moving average (SMA) support level may face pressure.
Bitcoin has fallen by more than 10% in the past 24 hours, having previously broken through $95,000. In early trading, it tested the 200-day SMA support level at $82,587. The 200-day SMA is often seen as an important indicator of long-term trends; falling below this level is usually considered a signal for potential major losses. As NASDAQ fell by 2.2%, triggering a "double top" pattern, there is no ignoring the possibility of BTC falling below its 200-day SMA. According to technical analysis theory, subsequent declines following a double-top pattern could reach up to 70% between peaks and valleys - implying that NASDAQ could fall to around19,400 points. The next possible support point for Bitcoin might be at $73,757.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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