Bitcoin Price Falls Below $90,000 Amid Nasdaq Weakness and Market Volatility
Bitcoin's price declined from about $93,000 to under $90,000 since Friday, trading around $89,600 at press time. The cryptocurrency had previously bounced above $80,000 on November 21. Last week, BTC formed a bearish candlestick with a long upper wick, signaling rejection of moves above $94,000 and indicating fading bullish momentum.
The Nasdaq index fell nearly 2% last week and printed a bearish engulfing candle, suggesting downside risk for Bitcoin given their historical correlation. The MOVE index formed an inverted hammer last week, implying potential higher treasury volatility. Movements in the MOVE index can cap risk assets despite Bitcoin's usual inverse relation to it.
Bitcoin is currently in a counter-trend rising channel within a broader downtrend. A breakdown toward the $80,000 level remains more likely than a sustained move higher. To reassert short-term bullishness, Bitcoin would need to clear $94,000–$95,000, facing heavy resistance from $96,000–$100,000, including the 50-day SMA and Ichimoku cloud.
The initial rally after the Federal Reserve's rate cut and resulting dollar index weakness did not sustain support for Bitcoin. Wintermute highlighted that Bitcoin tends to amplify Nasdaq downtrends, contributing to the current risk environment.
