The mainstream stock market recorded an unusual growth at the close of the market on Friday, a trend that might impact the price of Bitcoin (BTC). The tech-heavy stock index, the Nasdaq Composite printed its All-Time High (ATH) despite uncertainty in tech stocks.
Bitcoin and Nasdaq Correlation Advantage
According to an update from market analyst Zero Hedge, the Nasdaq hit a new all-time high with 72% of Nasdaq stocks closing red, and twice as many new lows as new highs.
The Nasdaq hit a new all time high with 72% of Nasdaq stocks closing red, and twice as many new lows as new highs. pic.twitter.com/kKizDEUbGG
— zerohedge (@zerohedge) June 14, 2024
Per current market data, the Nasdaq Composite closed the market at 17,688.88 after soaring as high as 3.54% in 5 days. While the heaviest components of the Nasdaq including Microsoft and Nvidia entered the day at 0.22% and 1.75%, Apple dropped 0.82%.
Bitcoin is poised to ride on the trend to shun the bad trading outlook of the past week. This trend has seen it drop by 4.79% in the past week. At the moment, Bitcoin is seeing a rebound with a 0.99% in 24 hours to $66,117.56. As a showcase of the Bitcoin bearish trend, the price fell as low as $65,083.52 from a 24 hour high of $66,530.31.
Historically, Bitcoin has a correlation with the Nasdaq. While this correlation is questioning as it stands, the latest ATH might trigger related rally for BTC. Per its latest outlook, its price is now down by 10.22% from its ATH of $73,750.07.
Bitcoin has survived a lot of drawdowns in recent times. This is confirmed as its price is locked in between the $64,613.06 and $71,946.46 range. After the highlighted 24 hour low, market data hinted that Bitcoin price has hit the oversold point. The BTC/USD 4H chart on trading view shows the Relative Strength Index (RSI) comes in at 40.
The price of BTC is also below its 50, 100, and 200 Moving Averages, hinting more potentials for upside.
Is Recovery Underway
The uptick in the price of Bitcoin at the moment might imply a change in trend direction. While the CME Gap will be as widened as expected, intense catching up is arguably ahead.
The trends in the spot Bitcoin ETF ecosystem might also help court the recovery. Besides the United States, other regions have entered into the ETF game. These nations include the United Kingdom, the Hong Kong, Thailand and Australia.
Bitcoin miner selloff over the past week might also not be as problematic as it sounds earlier. Recovery is imminent for Bitcoin and in no time, the impact of the halving might soon show up in the actual valuation of the coin.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
