The recent downturn in the US tech sector has sent ripples through the cryptocurrency market, with Bitcoin (BTC) experiencing a temporary pullback to the $111,000 NZD range. While the short-term chart shows some downward pressure, the underlying market structure remains surprisingly resilient.
Market Correlation and Support Levels
We are currently seeing a strong correlation between the Nasdaq and BTC movements. As tech stocks undergo a healthy correction, Bitcoin is testing key support levels. Technical indicators suggest that the $110K-$111K NZD zone is acting as a significant psychological and structural floor. Volume analysis indicates that while short-term traders are exiting, long-term conviction remains high.
The Case for Patience
In volatile periods like this, the most successful strategy is often disciplined holding. Panic selling during a technical correction often leads to missing the subsequent bounce. We are closely monitoring the 15-minute and 1-hour timeframes for signs of a reversal. The current consolidation period is a necessary part of the market cycle, clearing out excessive leverage and setting the stage for the next leg up.
Looking Forward
As we move through the week, the focus will be on whether BTC can maintain its footing above $111K. A successful defense of this level could signal a strong relief rally. Stay tuned for further updates as we navigate this high-conviction zone.