Nasdaq-100 Has Recently Retested A Critical Support Trendline
As pointed out by an analyst in a CryptoQuant , Nasdaq-100 is currently above a support line that has historically been important.Nasdaq-100 (NDX) is a stock market index that includes 102 equity securities issued by 101 of the largest non-financial companies (based on their market caps) listed on the Nasdaq stock exchange.
The value of the asset seems to have touched this line recently | Source:As you can see in the above graph, the price of NDX has been supported five times by this trendline since the year 2010. In each of these instances, the line has put a check on the decline in the index, and has consequently reversed it back up.
Looks like BTC is also just above a support trendline right now | Source:
In the past year or so, Bitcoin has shown to be highly correlated with the stock market. The reason behind this correlation has been the rise of institutional investors in the crypto who treat it like a risk asset.
The quant believes that if the current support retest in the stock market proves to be successful, then BTC could also be expected to see a reversal of its own due to its correlation with the stocks.Bitcoin Price
At the time of writing, Bitcoin’s price floats around $17.2k, up 1% in the last week. Over the past month, the crypto has lost 7% in value.
Featured image from Maxim Hopman on Unsplash.com, charts from TradingView.com, CryptoQuant.com