bitcoin is currently in a phase of consolidation and distrust following weeks of aggressive volatility and uncertainty. This period follows a series of boring corrections and consolidations, which often precede significant market movements.
Historically, bitcoin price action tends to build momentum during such phases, setting the stage for potentially explosive growth.
Prominent cryptocurrency analyst and investor TechDev has shared an interesting analysis comparing bitcoin’s current cycle to the Nasdaq’s historical performance. According to TechDev, the parallels between btc and the Nasdaq suggest that the cryptocurrency market could be gearing up for an exciting upward trajectory.
As investors keep a close eye on these patterns, anticipation is mounting for the next big move in bitcoin price. The next few weeks could be pivotal in determining whether this consolidation phase will lead to another strong rally.
bitcoin vs Nasdaq: Is a macroeconomic leg imminent?
The bitcoin market is currently facing a lot of uncertainty, despite Federal Reserve (FED) Chairman Jerome Powell's announcement last Friday, which signaled a possible policy shift with an expected interest rate cut in September.
While this news initially generated optimism, the broader market remains concerned, reflecting the complex dynamics at play.
However, amidst this uncertainty, some investors and analysts maintain a positive long-term outlook for btc. One such analyst is TechDev, who recently provided a x.com/TechDev_52/status/1824565668710154585/photo/1″ target=”_blank” rel=”noopener nofollow”>Intriguing analysis comparing bitcoin’s current monthly chart to the Nasdaq’s two-month chart from 2014. At the time, the Nasdaq was trading around $12 before embarking on a massive macro bull run that eventually reached its current levels near $70.
TechDev’s analysis suggests that bitcoin may be on the cusp of experiencing a similar macroeconomic rally, projecting a scenario where bitcoin could experience a substantial rally, potentially mirroring the Nasdaq’s historic surge. This comparison is particularly compelling given the market structure and sentiment parallels between the two charts.
While immediate market sentiment is cautious and many traders are still wary of potential downside risks, the longer-term confluence indicated by TechDev analysis provides a more bullish outlook.
If bitcoin follows a similar path to the Nasdaq, it could be poised for a significant upward trajectory in the coming months, defying current market uncertainty and paving the way for new all-time highs.
btc Price Action
bitcoin is trading at $63,800 at the time of writing, positioned above its daily level of 200. moving average (MA)) at $63,420. This is a significant advance as three consecutive daily candles closed above this level, indicating strength for the bulls.
The 1D 200 MA is a critical indicator for determining the continuation of a trend, and holding above it suggests that btc could be poised to move towards higher levels.
However, the market is not without risks. There is still a chance that btc could test lower demand around $61,300, which would maintain the overall bullish structure. Testing this level could be necessary to gain momentum for the next leg up, but losing the 200-day moving average would be worrying.
A drop below this crucial moving average could indicate a weakening in the strength of the current uptrend and possibly signal a shift in market sentiment. Therefore, staying above the 200-day moving average remains vital to maintaining bitcoin’s bullish outlook.
Cover image by Dall-E, chart by Tradingview
