Bitcoin’s connection to the Nasdaq QQQ ETF might be far greater than one would expect. The deeper correction for the digital gold could be around the corner, as Benjamin Cowen highlights historical market trends between two assets. The post_ETF launch movement and the trajectory of QQQ in 1999 could tell us something about the future of Bitcoin, too.
QQQ initially launched at around $48-49 and rose to $120 within only 54 weeks. However, the asset’s struggle to hold above $100 caused a massive correction, which pushed it to the $80 range and even below it. The current structure of Bitcoin could be somewhat different from that tendency. With the launch of the spot ETF, Bitcoin surged from $48,000 to the top within a 54-week time frame.
QQQ saw its peak at around the 54-week mark, followed by three consecutive weeks of declines before it finally bounced. So far, Bitcoin’s trajectory is somewhat similar, showing us a new high and then two weeks of correction in a row. If everything aligns, Bitcoin is set for another week of downside before we finally see relief.
Bitcoin’s post-halving history also shows a great possibility of a correction in January. The volatility surge and uncertainty on the market in general should also increase by the end of winter. Bitcoin dominance is also rising, which pushes altcoins to their limits, aggravating their performance and potential changing capital flows toward the digital gold, so expecting a drop among the top alts with the recovery of BTC is not unusual.
Obviously, expecting an exact repetition of the aforementioned trends might not be the most optimal strategy, but markets are not guaranteed to follow past history. The pattern itself is intact for now, but deviations happen constantly, considering the nature of both traditional and cryptocurrency markets. The overall market picture is intact though – if BTC fails to hold important support levels, expect a price dive, which will solidify the current tendency on the market.
