Nasdaq’s ‘Double Top’ Sparks Fears of Bitcoin Dropping Below $82K Support

Bitcoin Faces Breakdown Risk as Nasdaq Confirms Bearish Double-Top Pattern

The technical landscape for both Bitcoin (BTC) and the Nasdaq Composite has taken a bearish turn, with major support levels now under pressure.

According to research firm Ecoinometrics, Bitcoin’s long-term price recovery is closely linked to the Nasdaq’s performance. However, Monday’s confirmation of a bearish “double top” pattern in the Nasdaq is raising concerns that BTC could see further downside.

Bitcoin has dropped more than 10% in the past 24 hours, erasing Sunday’s rally to $95,000. Earlier today, the cryptocurrency tested the 200-day simple moving average (SMA) at $82,587, a crucial technical support level. A sustained break below this could signal a deeper correction.

The Nasdaq fell 2.2% on Monday, triggering a confirmed breakdown from its double-top formation. This classic reversal pattern, which consists of two peaks separated by a trough, is typically a warning sign of an extended downtrend.

The index formed two highs near $22,200 since mid-December, with a trough at $20,538. By closing below that level, the Nasdaq confirmed the double-top pattern, suggesting a potential move down to 19,400, based on technical projections. Historical data from CMT sources indicates that this formation has a failure rate of just 11%, meaning it typically leads to continued declines.

Bitcoin’s price trajectory remains tied to broader macroeconomic conditions. With both BTC and the Nasdaq struggling near their respective 200-day SMAs, further weakness in equities could accelerate selling pressure in crypto markets.

Should Bitcoin lose its 200-day SMA support, the next key level to watch is $73,757—an area that previously acted as strong resistance before turning into support.