Bitcoin Struggles to Recover as Traders Brace for Further Q4 Dip – Nasdaq & Fed Rate Cuts in Focus
New York, NY – October 17, 2024 - Bitcoin (BTC) is facing headwinds as it attempts to regain lost ground following a recent dip to $112,000. Traders are increasingly anticipating further price weakness heading into the fourth quarter, with key support levels now under scrutiny. The cryptocurrency’s performance is also being closely watched in relation to broader market trends, particularly the Nasdaq 100 and potential shifts in Federal Reserve policy.
BTC/USD is currently hovering around its daily open, experiencing only a modest rebound from lows reached in nearly two weeks. Support currently sits around $111,600, but analysts are preparing for the possibility of a further decline.
New Price bottoms on the Horizon?
Several market participants are pinpointing potential new bottom targets should the selling pressure continue. Crypto trader and analyst Michaël van de Poppe suggests that holding current levels is crucial. “If $BTC will hold these crucial levels for support, then $115K upwards would be the next clear resistance point,” he noted on X (formerly Twitter). However, he cautions that a break below these levels could trigger a “cascade” down to the $106,000 – $108,000 range, which he identifies as a prime buying zone.
Trader BitBull echoes this sentiment, highlighting the importance of the 100-day exponential moving average (EMA). “$BTC bounced back from its daily EMA-100 level. But you could see further dump too,” he warned,adding that a failure to hold this level could lead to notable capitulation,potentially driven by “whales” looking to maximize selling opportunities in Q4.
Nasdaq RSI Raises Concerns of Crypto Knock-On Effect
Adding to the cautious outlook, investor Ted Pillows is drawing attention to the Nasdaq 100’s relative strength index (RSI). Currently at 78 - its highest level as July 2024 – the RSI suggests the Nasdaq might potentially be overbought. Pillows points out that a similar RSI peak in the past preceded a 17% drop in the Nasdaq within 2-3 weeks. Given the strong correlation between crypto and the Nasdaq, he anticipates a similar downturn in Bitcoin and altcoins.
