Bitcoin ended Monday about 0.7% higher while the Nasdaq 100 jumped 3.4%. The analysis calls for either a strong bounce or a move to $69K.
Bitcoin barely moved on Monday while the Nasdaq 100 posted a big one-day gain. The Nasdaq 100 Index bounced back 3.4%, a gain equivalent to around $1.1 to 1.3 trillion, with a heavily oversold AI trade accounting for much of it. Gold and silver also gained, but Bitcoin finished around 0.7% up and was already down 1.3% on Tuesday morning.
A strong bounce or $69K next
On the 4-hour chart, the analysis describes two parallel channels stacked on top of each other. Price action is bunching below the bottom channel but above horizontal resistance at $73,800. A second descending trendline, drawn from the last lower high, forms a small descending wedge.
Bulls get a chance to make something of it if price breaks through the upper trendline rather than the lower one. A weak bounce followed by another roll-over will not be enough. Otherwise Bitcoin is headed to $69K, the top of the 2021 bull market.
Support and the 200-day average could brake the decline
The daily chart does not look as though the decline will halt any time soon. Even so, a horizontal support level and the 200-day simple moving average could act as a brake near the current level. A candle tail testing the 200-day SMA while the candle body holds above the $73,800 support would probably be the bullish take.
Weekly chart offers a bullish possibility
On the weekly chart, MACD crossovers have historically all resulted in fairly dramatic corrections. This time may look different: a MACD cross-down looks likely, yet price made its top a couple of months ago, and the two may not match up. The indicator lines may not cross, or may cross down only shallowly before crossing back up.
The analysis also sees the potential formation of a giant inverse head and shoulders bottoming pattern. The right shoulder could fall to the bull market trendline without invalidating it, and the pattern could push Bitcoin all the way up to $116K.
Source: Crypto Daily™
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