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Bitcoin (BTC) has emerged resilient despite the technology stock sell-off. The leading cryptocurrency has rallied 7.19% from a low of around $59,100 to the current level of $63,348. The rebound happened even as the Nasdaq Composite Index suffered its biggest one-day drop since April 2025, dropping over 4% on Friday.
Bitcoin's ability to maintain above its 200-week Simple Moving Average (SMA) around the $61,880 level remains one of the most positive signals, according to veteran market analyst Filbfilb.
This is a notable cycle bottom in prior bear markets in 2015, 2018 and 2020. Many traders feel the recent drop below $60,000 could be a temporary correction rather than the start of a long-term sell-off, if Bitcoin manages to hold on to this support level.
If that's the case, the next positive confirmation level may be at the 50-week SMA at $92,630 or higher, as it would be over 43% higher than the current price action.
Why it Matters
Bitcoin has been in a consolidation phase, but the Nasdaq is seeing more signs of a downward trend. The weekly Relative Strength Index (RSI) has fallen from recent overbought levels around 74.75 to 62.46. Since 2021, each weekly drop below 70 on the Nasdaq has been followed by a rally back to the index's 20-week SMA. If the trend continues, the Nasdaq could fall to 22,905 points, which represents a loss of some 10.75% from around the current levels.
Bitcoin's price has recently fallen to its lowest level in history compared to the Nasdaq, as per market data.
The ratio's daily RSI dropped to 14.70 on Saturday from its previous record low of 14.88 in February. Interestingly, Bitcoin's price bounced back over 30% since February.
Such extreme oversold conditions usually precede a mean reversion, where the asset starts to do better following a run of underperformance.
Also Read: Bitcoin Price Falls to $63,000 After Massive Crypto Market Selloff
Macroeconomic risk and uncertainty, ETF outflows, and geopolitical events are expected to provide some volatility, but Bitcoin's technicals are strongly linked to its continued support in the $60,000-$62,000 range.
Once the Nasdaq continues the correction, if Bitcoin remains below its long-term moving averages, capital may start to flow back into Bitcoin again. Based on the current technical picture, that may fuel a more robust rebound in the months to come toward the $90,000 level.
Traders are still preoccupied with the question of whether Bitcoin has bought time until a full-fledged correction in traditional stock markets has a wider effect or whether it can still hold onto its long-term support level.
1. Why is Bitcoin outperforming the Nasdaq recently?
Bitcoin has rebounded more than 7% from its recent low while the Nasdaq continues to face selling pressure. Some traders believe capital may be rotating back into crypto as technology stocks undergo a correction.
2. Why is the 200-week SMA important for Bitcoin?
The 200-week Simple Moving Average near $61,880 has historically acted as a major cycle bottom during previous bear markets. Holding above this level is viewed as a positive long-term technical signal.
3. What could happen if the Nasdaq falls another 10%?
A deeper Nasdaq correction could encourage investors to seek alternative risk assets if Bitcoin remains stable. Some analysts believe BTC could outperform traditional equities if it maintains key support levels.
4. What does the Bitcoin-Nasdaq RSI reading indicate?
The Bitcoin-to-Nasdaq ratio recently recorded an RSI of 14.70, its lowest level on record. Such extreme oversold readings have historically been followed by strong mean-reversion rallies in Bitcoin.
5. What levels should Bitcoin traders watch next?
The key support zone remains between $60,000 and $62,000. On the upside, traders are monitoring resistance levels near $65,000 and longer-term targets around the 50-week SMA near $92,630.
