The Ecoinometry Research Service said on Monday that long -term recovery from Bitcoin (BTC) is closely linked to the capacity of NASDAQ to rise up, highlighting the significant positive correlation between the two.
Unfortunately for cryptographic bulls, the Nasdaq sparked a major downside reversal known as “Double Top” on Monday, endangering the support of the Simple Mobile Mobile (SMA) of BTC at 200 days.
Bitcoin, the main cryptocurrency by market value, fell by more than 10% in the last 24 hours, overthrowing the price rally on Sunday at $ 95,000. At one point at the start of the day, prices tested the 200-day SMA support at $ 82,587, as data from the TradingView mapping platform show.
The 200 -day SMA is generally considered as a key indicator of long -term trends, with lower price reductions than this level often interpreted as a significant potential losses signal.
The possibility that the price of the BTC is exceeded below the long -term average cannot be excluded, because the Nasdaq, heavy of Wall Street, dropped by 2.2% on Monday, triggering double ventilation.
The double peak includes two peaks separated by a hollow and takes about two to six weeks to form. The difference between the two peaks must be equal to or less than 5%, the spread between peaks and the hollow being at least 10%, according to the theory of technical analysis.
They are directives and not rules; The backdrop is more important, which means that the model should appear after a prolonged upward trend in Valide, which is the case with the Nasdaq.
The NASDAQ has formed two peaks almost $ 22,200 since mid-December, with a hollow at $ 20,538. The index ended Tuesday below the coverage of the hollow, confirming the double -top downward inversion model.
According to the theory of technical analysis, the subsequent decline could be at least 70% of the distance between peaks and hollows, which means that the Nasdaq could go as low as 19,400. The historical failure rate of the model is 11%, according to CMT analysis books. This means that breakdowns cause deeper losses most often.
The NASDAQ and the BTC lost a bullish momentum in December and have since exceeded exchanges near their respective 200 days.
Below the 200-day SMA, the next Bitcoin support is seen directly in the old record (resistance) at $ 73,757.
