In recent days, Bitcoin has continued to slowly but surely decline. This is a common and healthy reaction after the huge increase in recent weeks. However, the price has now reached a crucial point. If we miss an important indicator, there is a chance that the graph will become redder than we would like to see…
In this analysis, we will first turn our attention to the indicator and discuss Bitcoin’s recent price movements on a short-term chart. Next, let’s take a look at the correlation between Nasdaq and Bitcoin. Although NDQ is on its way to an all-time high, the question is whether Bitcoin will follow suit. This would represent an additional increase of 88%.
Bitcoin should not miss this indicator
In the diagram below we see candles representing 4 hours each. This means we are now looking at price data from the past two weeks. Throughout this entire trend, there has been one defining factor, the 50 Simple Moving Average (SMA). This indicator uses the average of the previous 50 4-hour scandles to create a line: strong support.
With each price correction, buyers re-entered the market as price tested the indicator, leading to a subsequent increase. This continued until the $38,000 mark.
After reaching $38,000, Bitcoin is in a steady downtrend and has once again reached the indicator level. We have now reached a crucial point. If the 4-hour candle closes at current levels, the indicator still appears to provide sufficient support for further upside potential, with $38,000 back in sight. Suppose we close this candle or any of the next candles below the indicator, then we have a serious problem. Keep the $35,780 level as a potential support level.
Nasdaq Almost Hits an ATH, Why Hasn’t Bitcoin Yet?
Overall, Bitcoin still regularly follows the movements of the stock markets. Although it is sometimes not immediately noticeable, the formation of tops and bottoms often occurs simultaneously. A good example of this is Bitcoin’s top formation at $69,000, which occurred the week of November 8, 2021. Less than two weeks later, the Nasdaq also peaked.
The Nasdaq stock price is currently just 8% away from an all-time high, and the bullish pattern that has formed in recent weeks suggests that moment is fast approaching. The big question is how Bitcoin will react to these price developments on the Nasdaq.
Will the current uptrend continue and break both the ATH and Nasdaq? It’s hard to predict, but remember: if history is any indicator and the stock market continues to rise, Bitcoin will do the same at some point. The question is therefore not if, but when an ATH will be achieved.
Source: BTC Direct
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Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
