Nasdaq’s next move to affect Bitcoin’s (BTC) price in the near term?
In recent times, the price of Bitcoin (BTC) has maintained a close relationship with the development of the stock market in the United States. During periods when the stock price rose aggressively, the price of bitcoin also rose, but in a relatively lower range. Given this scenario, significant changes in the NASDAQ stock market could create an impact on cryptocurrency prices in the short term.
NASDAQ On The Brink
According to data, NASDAQ has been above the trend risk support as can be seen from the image below. This trendline has prevented prices from falling further and has supported it since 2010. However, in the coming weeks the market will determine the reaction to this trendline.
There have been five instances in the past where this trend line has acted as support for the market.
Read more: Will Bitcoin’s (BTC) price reach $100,000 in 2024? Data suggests that
Despite the fact that this trendline has the potential to put an end to the current downtrend and serve as the starting point for a market recovery; the trendline’s support, if broken, would indicate that the current downtrend is extremely strong and that the market still has more room to fall.
Bitcoin Imitating NASDAQ?
Bitcoin, on the other hand, is also currently resting on support at a trendline as can be seen from the figure below.
Given the association between the stock market and Bitcoin, there is a possible expectation of a reversal in the cryptocurrency market if the stock market is supported here. If the stock market is not supported, analysts expect a continuation of the downward trend.
After the end of 2021 and continuing into mid-2022, the price of cryptocurrencies climbed and fell in a manner comparable to stock prices.
A comparison of the price of Bitcoin (BTC) with the price of the S&P 500 (SPX) and the Nasdaq 100 is presented in the following chart (NDX).
BTC Mining
Aside from the stock market correlation, which could drag the price of Bitcoin down, the number one cryptocurrency by market capitalization is also facing the brunt of a severe bitcoin mining crisis due to the ongoing bear market.
Bitcoin’s hash rate, mining difficulties and possible bankruptcies of mining companies could lead to a dump in the BTC price in the short term.
Read more: Will the BTC mining slowdown hamper Bitcoin’s short-term price?
The content presented may include the author’s personal opinion and is subject to market conditions. Do market research before investing in cryptocurrencies. The author or publication has no responsibility for your personal financial loss.
