Bitcoin at Risk of Deeper Losses as Nasdaq Breakdown Signals Trouble

Bitcoin’s (BTC) bullish momentum is fading as technical pressures mount, with the Nasdaq’s latest move confirming a bearish reversal pattern that could spell further downside for risk assets.

Research firm Ecoinometrics emphasized on Monday that Bitcoin’s price recovery remains closely linked to the Nasdaq’s trajectory. However, the tech-heavy index has now completed a “double top” formation—a classic bearish signal—threatening BTC’s 200-day simple moving average (SMA) support.

Bitcoin has slumped over 10% in the past 24 hours, reversing Sunday’s sharp rally to $95,000. Earlier today, BTC briefly tested its 200-day SMA at $82,587, a level widely viewed as a critical long-term support. If this level fails, further losses could be imminent.

On Wall Street, the Nasdaq fell 2.2% on Monday, confirming a double-top breakdown after forming peaks near $22,200 since mid-December, with a trough at $20,538. A close below that trough validated the bearish pattern, increasing the likelihood of a further drop to around 19,400. Historical data suggests that this formation typically leads to continued declines, with a failure rate of just 11%.

Bitcoin and the Nasdaq have both struggled to maintain their bullish momentum since December, and their close correlation means further Nasdaq weakness could drive BTC lower.

If Bitcoin breaks below its 200-day SMA, the next major support zone lies at $73,757—its previous all-time high from 2021, which has since acted as a key pivot level.