Bitcoin is currently in a phase of consolidation and disbelief after weeks of aggressive volatility and uncertainty. This era follows a series of corrections and dull consolidations, which regularly precede significant market moves.
Historically, Bitcoin’s price motion tends to construct momentum during such phases, setting the stage for potentially explosive growth.
Outstanding crypto analyst and investor TechDev has shared an intriguing evaluation comparing Bitcoin’s current cycle to the Nasdaq’s historical performance. In keeping with TechDev, the parallels between BTC and the Nasdaq suggest that the crypto market might be gearing up for an exciting upward trajectory.
As investors closely monitor these patterns, anticipation builds for the subsequent big move in Bitcoin’s price. The approaching weeks might be pivotal in determining whether this consolidation phase will lead to a different strong rally.
Bitcoin Vs Nasdaq: Is a Macro Leg Imminent?
The Bitcoin market is currently grappling with significant uncertainty, despite the Federal Reserve (FED) Chairman Jerome Powell’s announcement last Friday, signaling a possible shift in policy with an anticipated rate of interest cut in September.
While this news initially sparked optimism, the broader market stays apprehensive, reflecting the complex dynamics at play.
Amid this uncertainty, nonetheless, some investors and analysts maintain a positive long-term outlook for BTC. One such analyst is TechDev, who has recently provided an intriguing evaluation comparing Bitcoin’s current monthly chart to the Nasdaq’s two-month chart from 2014. At the moment, the Nasdaq was trading around $12 before embarking on an enormous macro bull run that eventually reached its current levels near $70.
TechDev’s evaluation suggests that Bitcoin could also be on the cusp of an analogous macro leg up, projecting a scenario where Bitcoin could experience a considerable rally, potentially mirroring the Nasdaq’s historic rise. This comparison is especially compelling given the market structure and sentiment parallels between the 2 charts.
While the immediate market sentiment is cautious, with many traders still wary of potential downside risks, the long-term confluence indicated by TechDev’s evaluation provides a more bullish perspective.
If Bitcoin follows a path much like the Nasdaq, it might be poised for a major upward trajectory in the approaching months, defying the present market uncertainty and paving the best way for brand new all-time highs.
BTC Price Motion
Bitcoin is trading at $63,800 when writing, positioned above its every day 200 moving average (MA) at $63,420. This can be a significant development, as three consecutive every day candles have closed above this level, signaling 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 might be poised to maneuver toward higher levels.
Nonetheless, the market isn’t without its risks. There’s still the likelihood that BTC could test lower demand around $61,300, which might still maintain the general bullish structure. Testing this level is likely to be vital to assemble momentum for the subsequent leg up, but losing the 1D 200 MA could be concerning.
A drop below this important moving average could indicate weakening strength in the present uptrend and potentially signal a shift in market sentiment. Subsequently, holding above the 1D 200 MA stays vital for sustaining Bitcoin’s bullish outlook.
Cover image from Dall-E, chart from Tradingview