Bitcoin price performance strikingly similar to Nasdaq By CoinEdition

by James · February 23, 2023

Benjamin Cowen compares Bitcoin price performance to the Nasdaq of the dotcom crash era.
The Nasdaq crashed by about 77% before achieving a 60% pullback.
Bitcoin has fallen 77% and recovered 60% since the beginning of the last bear market.

Benjamin Cowen, CEO and co-founder of quantitative market analysis platform ‘Into The Cryptoverse’ has shared his opinion on the current Bitcoin market cycle. He analyzed the collected data to predict the next Bitcoin direction and what users should expect in the coming weeks.

Cowen began his analysis by comparing Bitcoin to the Nasdaq of the dotcom crash era. Then the Nasdaq crashed by about 77% before achieving a 60% return. Bitcoin has mirrored this behavior with its price performance from the last bear market. Bitcoin’s drawdown was 77% before bouncing back in January 2023, giving it a 60% recovery before the current consolidation.

During the analysis, Cowen noted that Bitcoin has risen to its 50-week moving average, replicating the Nasdaq’s behavior during the dotcom crash. Using this information, and data obtained from other indicators, he established striking similarities between what Nasdaq was experiencing and what Bitcoin is going through.

Cowen classified the current week as a critical week for the Bitcoin price. He compared Bitcoin’s weekly relative strength index (RSI) to that of the Nasdaq during the dotcom crash. Up to the time of analysis, both assets have maintained equality in movement. However, with Bitcoin’s current price situation, Cowen noted that a continued rally would trigger a divergence from the Nasdaq trend, and Bitcoin’s price could continue into more price breakouts.

Continuing his analysis, Cowen identified three notable rallies on the Nasdaq that fell short ahead of the significant bottom. All three rallies were about 40%, 50% and 60%. Like the other indicators, the Bitcoin price has followed this path, registering two closing rallies at 40% and 50%, with the current rally approaching 60%.

Cowen’s analysis drew striking similarities between Bitcoin’s current behavior and the performance of the Nasdaq during the dotcom crash. It supports the idea that investors can use historical data to predict future market behavior. Based on that, Bitcoin investors may have to pay close attention to what happened during the dotcom era, with the Nasdaq as a guide to the future of Bitcoin’s price.

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