PANews reported on March 4 that according to market analysis, the technical outlook for Bitcoin (BTC) and the Nasdaq index deteriorated simultaneously. On Monday, the Nasdaq triggered a bearish reversal of the "double top" pattern, further increasing the short-term downward pressure on Bitcoin.
Bitcoin prices fell more than 10% in the past 24 hours, giving up earlier gains and retreating from $95,000 on Sunday to a low of $82,587 on Monday, testing the key 200-day simple moving average (SMA) support level. The 200-day SMA is considered an important indicator of the long-term trend, and a break below this level could foreshadow a larger decline.
The Nasdaq's "double top" pattern, consisting of two highs and a trough, is usually formed after a sustained uptrend, signaling that prices may fall further. The Nasdaq has formed two highs near $22,200 and a trough at $20,538 since mid-December. On Tuesday, the Nasdaq broke below the trough support, confirming this bearish pattern.
According to technical analysis theory, the decline of the double top pattern may be at least 70% of the distance between the high and the trough, which means that the Nasdaq may fall further to around $19,400. Historical data shows that the failure rate of this pattern is only 11%, and in most cases it will lead to a deeper decline.
Bitcoin and Nasdaq both lost momentum in December and are now trading close to their respective 200-day moving averages. If Bitcoin falls below the $82,000 support level, the next key support will be the previous all-time high of $73,757.
