As a seasoned crypto investor with years of experience in the market, I’ve seen firsthand how closely intertwined the performance of Bitcoin (BTC) and the Nasdaq Composite can be. The latest trend in the stock market, with the Nasdaq hitting an all-time high despite a large number of stocks closing in the red, has me optimistic for Bitcoin’s future price movements.
At the market’s end on Friday, the widely followed stock market experienced an unexpected surge, which could potentially influence Bitcoin (BTC)’s pricing. Remarkably, the Nasdaq Composite, a stock index predominantly composed of technology companies, reached its all-time high (ATH) amidst lingering doubts concerning tech stocks.
Bitcoin and Nasdaq Correlation Advantage
Market analysis firm Zero Huge reports that the Nasdaq reached a fresh record high, yet over 70% of its constituent stocks finished the day in the red, while there were twice as many stocks hitting new lows compared to new highs.
As an analyst, I’d put it this way: The Nasdaq reached a new record peak despite 72% of its constituent stocks ending the day in the red. Moreover, there were twice as many stocks registering new lows compared to new highs.
— zerohedge (@zerohedge) June 14, 2024
Based on the most recent market information, I observe that the Nasdaq Composite ended its trading session at a level of 17,688.88, marking a robust gain of approximately 3.54% over a five-day span. Notably, some of the Nasdaq’s heaviest constituents such as Microsoft and Nvidia commenced the day with modest increases of 0.22% and 1.75%, respectively. On the contrary, Apple experienced a significant decline of 0.82%.
Bitcoin has bounced back slightly after a week of unfavorable trading, with a 0.99% increase in the last 24 hours to reach $66,117.56. However, the past week saw a significant decline for Bitcoin, dropping by 4.79%. The price dipped as low as $65,083.52 during this period, having started at a 24-hour high of $66,530.31.
Previously, Bitcoin’s price movements have mirrored those of the Nasdaq Composite Index to some extent. However, this connection is debatable at present. Nevertheless, if Bitcoin reaches a new all-time high (ATH), we might observe a corresponding surge in its price. Currently, Bitcoin’s value has dropped by 10.22% from its peak of $73,750.07.
Bitcoins has weathered numerous price declines in the past, as evidenced by its current price being contained within the $64,613.06 and $71,946.46 range. Following a significant daily dip, market indicators suggest that Bitcoin’s price reached an oversold state. The RSI on Bitcoins 4-hour chart on TradingView is presently at 40.
The current cost of Bitcoin is under its 50-, 100-, and 200-day moving averages, implying further prospects for growth.
Is Recovery Underway
The current increase in Bitcoin’s price could signal a shift in the market trend. Despite the anticipated widening of the CME gap, it seems that an extensive period of price adjustment may follow.
The Bitcoin ETF market trends could contribute to the market’s recuperation in addition. Outside of the US, various countries are now partaking in the ETF scene. Among them are the United Kingdom, Hong Kong, Thailand, and Australia.
The recent sell-off by Bitcoin miners over the past week may not be as alarming as initially perceived. The value of Bitcoin is poised for a recovery, and shortly, the effects of the upcoming halving event will become apparent in the coin’s true worth.
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2024-06-15 22:36