$BTC

The Nasdaq index triggered a "double top" bearish reversal pattern on Monday, intensifying the short-term downside risk for Bitcoin. Research institution Ecoinometrics has indicated that Bitcoin's long-term recovery is closely tied to the upward trend of the Nasdaq. Bitcoin has dropped over 10% in the past 24 hours, erasing its gains since Sunday. Earlier today, Bitcoin's price briefly tested the 200-day simple moving average (SMA) support level of $82,587.

The 200-day moving average is considered a key indicator of long-term trends, and a price drop below this level is often interpreted as a signal of potential significant losses. Since mid-December, the Nasdaq has formed two peaks around 22,200, with a trough at $20,538, closing below the trough support level on Tuesday, confirming the double top bearish reversal pattern. According to technical analysis theory, the subsequent drop could be at least 70% of the distance between the peaks and the trough, suggesting that the Nasdaq may fall to 19,400. If Bitcoin drops below the 200-day moving average, the next support level will be directly at the previous historical high of $73,757, which has turned to support.