Bitcoin tried to stabilize around $63,000 after the US markets opened on Tuesday. The price hit an intraday high of $64,660, its highest level since June 22, but momentum weakened with the pullback in U.S. stocks.
Selling pressure in US stocks also affected Bitcoin
The decline seen in US stock markets, especially on the technology side, also put pressure on crypto assets. S&P 500 fell 0.6 percent and Nasdaq 100 fell 2.1 percent. Chip companies led the sales. Micron Technologies stock fell more than 9 percent.
On the same day, SpaceX was expected to be included in the Nasdaq 100 index. Market commentary platform The Kobeissi Letter stated that this was the fastest inclusion process in the index’s history.
The Kobeissi Letter highlights that SpaceX’s entry into the Nasdaq 100 is the fastest inclusion in the index’s history.
Despite the decline in Bitcoin, sales were limited due to net inflows into US spot Bitcoin ETFs for the second day in a row. This chart helped Bitcoin avoid a steeper decline despite the weakness in equity markets.
Relationship with Nasdaq strengthened again
Different opinions stand out regarding the short-term direction in the market. Trader Daan Crypto Trades said the correlation between Bitcoin and Nasdaq turned from minus 0.87 to plus 0.72 in a few days last week. This change indicates that the relationship between the two markets is strengthening again.
Daan Crypto Trades reports that the correlation between Bitcoin and Nasdaq turned from minus 0.87 to plus 0.72 in a short time and the market relationship changed significantly.
Commenting more cautiously, Exitpump argues that a round top structure may form in low time frames and this may bring a new retreat to the agenda. Trader Killa also predicts that, looking at historical examples, the next correction in the S&P 500 could mark the real bottom for Bitcoin.
John Bollinger pointed out the possibility of recovery in the long term
John Bollinger, the creator of the Bollinger Bands indicator, focused on a more positive scenario. Bollinger evaluates that the W formation, which is in the process of being confirmed on the daily chart, may produce a long-term reversal signal.
John Bollinger is a market analyst known in the world of technical analysis for his Bollinger Bands indicator. This indicator is widely used in both traditional markets and crypto assets to monitor price volatility and possible direction changes.
Mini dictionary: W formation is a technical structure that explains the possibility of the price signaling an upward turn after forming two bottoms. For verification, the crossing of the top area between two bottoms is usually monitored.
In his evaluation last week, Bollinger questioned whether the latest appearance of this structure could completely invalidate the downward trend in Bitcoin. Although the pressure on stock markets continues in the short term, technical indicators keep the possibility of recovery for Bitcoin in the wider time frame on the agenda.
