Bitcoin traders focused on the cryptocurrency maintaining its position above the crucial $60,000 level over the weekend, signaling strength despite a recent dip. Bitcoin recovered from lows near $59,100 to achieve an intraday peak around $62,950, sparking optimism about a sustained uptrend.
Technical analysis points to the 200-week simple moving average (SMA) near $61,880 as a vital support point that has historically marked Bitcoin’s bottoms in previous market cycles. Should Bitcoin hold this floor, attention turns to the 50-week SMA sitting close to $92,630 as the next significant resistance and potential target for an extended rally.
Meanwhile, the Nasdaq Composite index continues to struggle, having plunged over 4% recently—the steepest one-day drop since April 2025. Its technical indicators, including the relative strength index (RSI), suggest the index may decline by more than 10% toward its 20-week SMA near 22,905 points if the current corrective pattern repeats. Such a decline would likely extend into the mid-year.
This dynamic presents a contrasting outlook for Bitcoin and Nasdaq, with Bitcoin potentially poised to rebound sharply as the tech-heavy Nasdaq undergoes a period of correction.
Further supporting this view, Bitcoin’s valuation relative to the Nasdaq has entered historically oversold territory, according to its daily RSI readings. On Saturday, the RSI hit a low point not seen before—14.70—marking extreme undervaluation compared to the Nasdaq. The previous record, set in February, preceded a notable 30% rise in Bitcoin’s price.
This oversold condition implies that Bitcoin may be undervalued relative to the stock market, encouraging buyers to enter. It is notable as a similar pattern preceded a strong recovery recently, adding weight to a potential Bitcoin rally as Nasdaq weakness persists.