04.03.2025 16:11
According to the Ecoinometrics research, there is a strong positive correlation between Bitcoin and Nasdaq. The double top formation in Nasdaq poses a threat to Bitcoin's 200-day SMA support, while the cryptocurrency has lost over 13% in value in the last 24 hours, dropping to around $82,000.
```html
Bitcoin is experiencing a significant loss in value recently due to its strong connection with the Nasdaq index. According to a report by the research company Ecoinometrics, the downward trend in the technology index is directly affecting the cryptocurrency market. The most valuable cryptocurrency in the market has dropped over 13% in a single day, falling to around $82,000.
The Double Top Formation in Technical Analysis Signals Danger for Bitcoin
Bitcoin's recent loss in value has raised concerns in the cryptocurrency markets. According to a report published by the research company Ecoinometrics on Monday, Bitcoin's long-term recovery process is directly linked to the upward trend of the Nasdaq. The research findings proved that there is a strong positive correlation between these two financial assets.
The situation is worsening for cryptocurrency investors. The Nasdaq gave a bearish signal known as a "double top" in technical analysis during Monday's trading session. This development has significantly weakened the possibility of Bitcoin using its 200-day simple moving average (SMA) as support.
The highest market capitalization cryptocurrency, Bitcoin, has lost over 10% in the last 24 hours, completely erasing the previous day's gains and falling to around $82,000. According to data obtained from the TradingView platform, Bitcoin prices tested the 200-day SMA support at around $82,587 early today.
Experts consider the 200-day SMA to be an important indicator of long-term trends. A downward break of this support line indicates that more serious losses may occur in the future.
The Nasdaq index, which is heavily weighted with technology stocks, lost 2.2% on Monday, triggering the breakdown of the double top formation. This situation increased the risk of Bitcoin falling below its long-term average.
In technical analysis, the double top formation consists of two peak points with a trough in between and typically completes over a period of two to six weeks. According to technical analysis principles, the difference between the two peaks should be 5% or less, and the distance between the peak and the trough should be at least 10%.
While these rules are not strict, they are guiding in nature. What is important is that this formation occurs after a prolonged upward trend, as seen in the case of the Nasdaq.
Since mid-December, the Nasdaq has formed two peak points at around $22,200 and made a low at $20,538. The index confirmed the double top downward formation by closing below this low support on Tuesday.
According to technical analysis theory, subsequent declines are expected to be at least 70% of the distance between the peaks and troughs. This means that the Nasdaq could decline to around $19,400. According to CMT's analysis books, the historical failure rate of this formation is around 11%, indicating that more severe declines could often occur.
Both the Nasdaq and BTC have lost their upward momentum since December and are trying to hold near their 200-day averages. The next critical support level for Bitcoin below the 200-day SMA is considered to be the previous peak (resistance) level of $73,757.
```