Tony The Bull, a pseudonymous author for Bitcoinist, is believe that the strong trend and price performance of the Nasdaq could be very important for Bitcoin. Important in the sense that Bitcoin historically performed well when the Nasdaq’s tech stocks were in an uptrend.
According to Tony The Bull, the Nasdaq’s uptrend has a long way to go.
Small drop for the Nasdaq
Meanwhile, the Nasdaq is down more than 3 percent from its 2023 high set last week. In that regard, traders now seem to be taking their profits ahead of the US Federal Reserve’s interest rate meeting scheduled for next Wednesday.
At that meeting, the Federal Reserve is expected to raise interest rates by 0.25 percent. That would bring interest rates in the United States to the range of 5.25 – 5.50 percent.
Ultimately, it was these rate hikes that turned the market into a bear market in 2022. At least, that’s how most analysts think about it at the moment.
However, according to Tony The Bull, the Nasdaq’s uptrend may be too strong to prevent the index from hitting a new all-time high. The analyst bases this on, among other things, the Average Directional Index (ADX) of the Nasdaq.
Positive for Bitcoin?
In the chart above, Tony The Bull compares the price performance of the Nasdaq to that of Bitcoin. As you can see, the Bitcoin price skyrocketed after a similar setup in August 2020.
That surge came after the Nasdaq’s ADX jumped and that’s exactly what we’re seeing happening again right now. Now we have to wait for Bitcoin’s ADX to jump up.
That is at least a scenario that is possible for Tony The Bull. In 2020-2021, that resulted in about a 600 percent increase for Bitcoin. That would give Bitcoin a price of $180,000 today. We sign for that.
Free 20 euros worth of Crypto
Do you want to enter the crypto world and perhaps buy Bitcoin or another crypto? Then we have great news for you! Thanks to a special deal between Newsbit and Bitvavo, one of the most accessible and user-friendly crypto exchanges in Europe, our readers are getting an exclusive offer.
If you sign up to Bitvavo via the button below, you will not only receive 20 euros for free, but you will also not pay any trading fees on your first 10,000 euros in transactions.