Bitcoin's long-term recovery continues parallel to the trend of technology stocks. Ecoinometrics research highlights the link between Nasdaq's rise and Bitcoin price changes.
Nasdaq’s Double Top Formation Draws Attention
The 'double top' formation, a significant indicator in technical analysis, has appeared on the Nasdaq. Historically, such formations indicate the end of a strong upward trend and potential sharp declines. Investors believe this structure might have similar effects on the cryptocurrency market.
Bitcoin’s Support Levels Hold Critical Importance
In the last 24 hours, Bitcoin has lost more than 10% of its value, reaching the level of the 200-day simple moving average. Breaching this support point could lead to larger losses. Analysts highlight $73,757 as a critical barrier that cannot be overlooked.
Importance of Technical Analysis and Investment Strategies
Technical indicators show similar signals for both Bitcoin and Nasdaq, presenting risk factors for investors in both markets. Utilizing investment strategies based on technical analysis data is crucial for risk minimization.
Monitoring the dynamics of both traditional and cryptocurrency markets remains important. Technical formations like the 'double top' may serve as indicators of potential market trend changes.
