TechFlow news, on March 4, according to CoinDesk, the Nasdaq index triggered a "double top" bearish reversal pattern on Monday, increasing short-term downside risks for Bitcoin (BTC). Research firm Ecoinometrics said on Monday that Bitcoin's long-term recovery is closely tied to the Nasdaq's upward trend, highlighting a significant positive correlation between the two.
Bitcoin has dropped more than 10% in the past 24 hours, erasing gains from Sunday when it surged to $95,000. Earlier today, the price briefly tested the 200-day simple moving average (SMA) support level at $82,587. The 200-day SMA is considered a key indicator of long-term trends, and a break below this level is typically interpreted as a signal of potential significant losses.
The Nasdaq has formed two peaks near 22,200 since mid-December, with a trough at 20,538. The index closed below the trough support level on Tuesday, confirming the double-top bearish reversal pattern. According to technical analysis theory, the subsequent decline could be at least 70% of the distance between the peak and trough, suggesting the Nasdaq might fall to 19,400.
If Bitcoin falls below the 200-day moving average, the next support level would be directly at the former historical high of $73,757, which has now turned into support.
