Bitcoin can be considered as the Nasdaq 100 on steroids and the latter has fallen over 10% in the past 3 sessions. This has only happened 5 times in its history! Both Bitcoin and the Nasdaq are at interesting support levels and warrants traders full attention right now.
Chart 1: Bitcoin Daily chart: Back at familiar support
A close above $33k could see a meaningful bear market rally in Bitcoin.
Chart 2: Nasdaq 100 at big support
Momentum and breadth oscillators are currently flashing positive divergences and yesterdays selloff in the Nasdaq 100 so a big expansion in Nasdaq 100 members hitting new 52 week lows, a condition that normally is associated with a selling climax. Any daily reversals from current levels could spark a powerful short covering rally which will be very supportive of cryptocurrencies. Keep an eye on the Nasdaq!
