Bitcoin fell off of a cliff during the trading session on Tuesday as we have broken through the massive support level in the form of $72,000.
By breaking down below that level, it looks very much like a market that is going to continue to struggle, and I do think that we have a situation where traders are looking at this through the prism of whether or not we are going to try to find some type of floor below.
This is a market that just looks miserable at the moment, and as a result, I think you have to really start to question whether or not there's any real hope for Bitcoin. Bitcoin is just a miserable place at this point, and I recognize that traders will continue to see any hesitation in this market as a sign of serious trouble.
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Shift in Nasdaq Correlation and Outlook
I think ultimately you have a problem where Bitcoin is starting to lose its correlation with Nasdaq. Nasdaq was at one point in time highly correlated with Bitcoin, but really at this point in time, there's not much keeping Bitcoin up and vibrant. So, I think we go back towards the $64,000 level.
Falling interest rates have not been enough to keep Bitcoin alive, and now we have to seriously question what the longer-term outlook for Bitcoin is starting to become. After all, this is a market that I think will remain very hesitant to get overly aggressive, and I also recognize that we have a situation where traders are probably going to continue to look for some type of reason to hopefully find the.
All things being equal, I believe that Bitcoin is in serious trouble, although I do recognize that there is a major floor just below. If we get a wave of stabilization, perhaps we could see a turnaround, but ultimately this is a pretty ugly look.
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