Bitcoin Faces $70K Risk as Nasdaq Selling Intensifies

Cryptocurrencies face increased pressure with technology stocks as risk aversion escalates due to growing concerns over a transatlantic trade war related to the Greenland issue.

The macro backdrop is rapidly deteriorating. Concerns about growth, policy uncertainty, and capital flows have returned as a result of renewed trade threats between the United States and Europe.

The current selloff indicates that Bitcoin's corrective rebound since last November may already be complete from the standpoint of market structure. Price action has sharply declined, increasing the possibility that, should risk sentiment continue to deteriorate, the wider slump may restart.

The NASDAQ's response to support about 23,000 at today's open will serve as a significant short-term catalyst. A clear breach below that level would probably hasten the decline in stock, and past performance indicates that cryptocurrency would not be exempt.

Bitcoin Faces $70K Risk

Technically speaking, Bitcoin's recovery from 80,492 looks to have peaked at 97,922, after being rejected by the 55 W EMA and a 38.2% retracement from 126,289 to 80,492 at 97,986. The case that the decline from 126,289 is restarting would be strengthened by a firm break below the 86,405 support, which would allow for a complete retest of the 80,492 low.

A deeper medium-term correction would become the emphasis if 80,492 failed. According to that perspective, the next significant downside target is situated at the psychological level of 70,000, which is nearly a 50% retracement of the long-term increase from the low of 15,452 in 2022 to the high of 126,289 in 2025, which is placed at 70,870.

The second leg of the corrective pattern that started at the peak of 24,020 looks to be represented by NASDAQ's recovery from 21,898.28. The third leg lower would begin with a decisive break of 23,110.20 support. In such case, the decline would probably continue until 21,898.28 and perhaps even farther to a 38.2% retracement from the 2025 low of 14,784.03 to the 2025 high of 24,020.00 at 20,491.85.

The pressure on cryptocurrency markets would most likely increase if the NASDAQ made such a step. Long-term pulldowns in tech stocks have historically resulted in non-linear drops in cryptocurrencies as leverage unwinds and liquidity quickly thins.

The second leg of the corrective pattern that started at the peak of 24,020 looks to be represented by NASDAQ's recovery from 21,898.28. The third lower leg would begin with a decisive break of 23,110.20 support. In such a case, the decline would probably continue until 21,898.28 and perhaps even farther to a 38.2% retracement from the 2025 low of 14,784.03 to the 2025 high of 24,020.00 at 20,491.85.

The pressure on cryptocurrency markets would most likely increase if the NASDAQ made such a step. Long-term pulldowns in tech stocks have historically resulted in non-linear drops in cryptocurrencies as leverage unwinds and liquidity quickly thins.