Bitcoin rose to $64,660, tracks Nasdaq as tech stock sell off limits gains

Bitcoin stabilized near $63,000 after US markets opened on Tuesday, as the world’s leading cryptocurrency surged to $64,660, its highest level since June 22. However, momentum faded as US equities, especially tech stocks, faced sharp selling pressure during the session.

US tech stock declines weigh on Bitcoin

The drop in US stock markets, particularly in the technology sector, added pressure to the crypto market. The S&P 500 slid 0.6%, while the Nasdaq 100 fell by 2.1%. Chipmakers led the losses, with Micron Technologies shares tumbling more than 9% during the day.

Meanwhile, the market anticipated SpaceX’s inclusion in the Nasdaq 100 index on the same day. According to the financial analysis platform The Kobeissi Letter, this marked the fastest inclusion process in the index’s history.

Despite a modest pullback in Bitcoin, consecutive days of net inflows into US spot Bitcoin ETFs helped support prices. This trend limited the extent of Bitcoin’s slide, even as weakness spread through equities.

Bitcoin’s correlation with the Nasdaq strengthens again

Market analysts hold differing views over short-term direction. Trader Daan Crypto Trades noted that the correlation between Bitcoin and the Nasdaq shifted sharply within days, swinging from minus 0.87 to plus 0.72—a clear signal that the relationship between the two markets has strengthened recently.

Other analysts take a more cautious stance. Commentator Exitpump suggests that a “rounded top” pattern might be forming on lower timeframes, flagging the potential for a new correction. Trader Killa, citing historical trends, argues that the next major correction in the S&P 500 could signal Bitcoin’s true bottom.

John Bollinger points to recovery prospects in the long run

John Bollinger, the creator of the widely used Bollinger Bands indicator, is focusing on a more optimistic scenario. He notes a “W pattern” currently forming on Bitcoin’s daily chart, which, if confirmed, could indicate a long-term bullish reversal.

Bollinger is a renowned market analyst known for the Bollinger Bands indicator, which helps traders gauge volatility and potential trend reversals across traditional and crypto markets alike.

Mini glossary: The “W pattern” is a technical formation indicating the potential for a bullish reversal after a double-bottom. Confirmation typically occurs when price breaks above the peak between the two troughs.

Last week, Bollinger questioned whether this pattern could fully invalidate Bitcoin’s recent downward trend. While short-term pressure from equities persists, technical indicators continue to point to recovery potential for Bitcoin over a broader timeframe.

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