Is Bitcoin, which fell from 93 thousand to 90 thousand, following the rate of Nasdaq and S&P 500?

The price of bitcoin (BTC), which rose to a new record high of $93,445 late yesterday, has pulled back to $90,000, which remains a key resistance level. The current resistance level is defined by the trend line connecting the double tops formed in 2021, making it an important point to watch.

Interestingly, a similar trend also emerges in the Nasdaq-S&P 500 (NDX/SPX) ratio, which is seen as an indicator of investor risk appetite in traditional and emerging technology sectors. This rate, which has seemingly moved in tandem with bitcoin’s ups and downs since 2017, maintains its positive correlation with bitcoin.

The NDX/SPX ratio reached new highs last July, sending positive signals to bitcoin just above the critical trend line of double tops in 2021. Afterwards, it showed a significant decline and continued to remain below the trend line.

In short, bitcoin seems to follow the movements in the NDX/SPX rate as it has for years. If this pattern continues, we may witness BTC falling below $90,000 for a while longer.

However, a potential rise in the NDX/SPX rate could be perceived as a green signal for prices to rise to six figures. Some traders continue to bet on a break above $100,000.