Bitcoin is currently in a phase of consolidation and disbelief after weeks of aggressive volatility and uncertainty. This period follows a series of corrections and dull consolidations, which often precede significant market moves.
Historically, Bitcoin’s price movement builds momentum during such phases, laying the foundation for potentially explosive growth.
Prominent crypto analyst and investor TechDev has shared an intriguing analysis comparing Bitcoin’s current cycle to the historical performance of the Nasdaq. According to TechDev, the parallels between BTC and the Nasdaq suggest that the crypto market is gearing up for an exciting uptrend.
As investors closely watch these patterns, anticipation grows for the next big move in Bitcoin’s price. The coming weeks could be crucial in determining whether this consolidation phase will lead to another strong rally.
Bitcoin vs. Nasdaq: Is a Macroeconomic Crisis Coming?
The Bitcoin market is currently facing a lot of uncertainty despite Federal Reserve (FED) Chairman Jerome Powell’s announcement last Friday hinting at a possible policy change with an expected rate cut in September.
While this news initially sparked optimism, the broader market remains wary, reflecting the complex dynamics at play here.
However, amid this uncertainty, some investors and analysts maintain a positive long-term outlook for BTC. One such analyst is TechDev, who recently interesting analysis comparison of Bitcoin’s current monthly chart with the Nasdaq’s bi-monthly chart from 2014. At that time, the Nasdaq was trading around $12 before it began a massive macro bull run that eventually reached its current levels around $70.
TechDev’s analysis suggests that Bitcoin is on the cusp of a similar macro rally, predicting a scenario where Bitcoin could see a substantial rally, potentially mirroring the Nasdaq’s historic rise. This comparison is particularly compelling given the market structure and sentiment parallels between the two charts.
While market sentiment is currently cautious and many traders are still wary of potential downside risks, TechDev’s analysis offers a more positive long-term outlook.
If Bitcoin follows a similar path as the Nasdaq, its price could make a significant upward move in the coming months, overcoming the current uncertainty in the market and paving the way for new all-time highs.
BTC Price Action
Bitcoin is trading at $63,800 at the time of writing, which is above the daily 200. moving average (MA)) at $63,420. This is a significant development as three consecutive daily candles have closed above this level, indicating strength for the bulls.
The 1D 200 MA is an important indicator for determining whether a trend is continuing. If the price stays above it, BTC may be headed for higher levels.
However, the market is not without risks. There is still a possibility that BTC could test a lower demand around $61,300, which would still maintain the overall bullish structure. Testing this level might be necessary to gather momentum for the next leg up, but losing the 1D 200 MA would be a concern.
A drop below this crucial moving average could indicate waning momentum in the current uptrend and potentially signal a shift in market sentiment. Therefore, holding above the 1D 200 MA remains vital to maintaining Bitcoin’s bullish outlook.
Cover photo of Dall-E, chart by Tradingview