After falling for three straight days, Bitcon price stabilized on Thursday, mirroring the performance of US stocks. S&P 500 and Nasdaq 100 futures rose slightly, following the robust NVIDIA earnings that pointed to more AI chip demand. The BTC crash pause is also signaled by the Ichimoku cloud indicator, which points to a reversal to $90k.
Bitcoin and US stocks have become highly sensitive to Donald Trump’s news about inflation. He has hinted that the US will go on with its steel and aluminum tariffs, and those of neigboring countries like Canada and Mexico.
Bitcoin Price Crash Pauses as US Stocks Rises
Bitcoin price rose modestly on Thursday, reaching an intraday high of $87,000, up from this week’s low of $82,177. This recovery happened as the S&P 500 index futures rose by 41 points to $6,000. Those tied to the Nasdaq 100 and Dow Jones rose 180 points and 155 points, respectively.
The main catalyst for the recovery was strong NVIDIA earnings. It made over $39 billion in the fourth quarter as top clients like Microsoft and Amazon continued spending on AI. NVIDIA stock rose by over 1.5% in the premarket following the news.
Bitcoin and US stocks have some correlation. For example, this week’s BTC crash happened after the S&P 500 index flashed a sell signal.
However, a key risk is that the upcoming US tariffs will usher in a trade war that will affect BTC and other assets. Trump wants to implement reciprocal tariffs that may lead to higher inflation and slow growth.
BTC Ichimoku Cloud Indicator Points to a Brief Pullback
An anonymous X trader who accurately predicted the recent Bitcoin price crash believes that the coin would drop to around $84,000 this week. He added the Ichimoku cloud on the daily chart with the conversion line length at 20 and the baseline, leading span, and lagging span at 60, 120, and 30, respectively and predicted the downward trend.
The trader’s current scenario is a brief pullback to the 20-day Weighted Moving Average (WMA) at $90,000. In the worst-case scenario, he sees the Bitcoin price crashing to $80,000.
He based his moderately bullish case on February 27 pointing to an inverse head and shoulders pattern that is forming on the hourly chart. The left shoulder of this pattern is around $86,000, while the head is at this week’s lowest level, with the neckline near the 90,000 level. If the IHS pattern works well, the Bitcoin price may even have a bullish breakout to $95,000.
Double-Top Points to a Bitcoin Crash to $73,615
The anonymous analyst’s view is that the BTC price may have a brief rebound to $90,000. This does not mean a complete bullish breakout as there is a risk that the coin will drop to $73,615.
This target is based on the double-top pattern formation at $108,300, and its neckline at $89,100. The depth of this double-top is about 18%, and measuring that distance from the neckline points to a drop to $73,615. Interestingly, this price coincides with the March 2024 high.
Such crash will be a bullish BTC price forecast as it will be a sign that it has formed a break and retest pattern.
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