Bitcoin’s Trajectory Mirrors Nasdaq QQQ—Is a Deeper Correction Ahead?

Bitcoin’s correlation with the Nasdaq QQQ ETF suggests a deeper correction may be imminent. Analyst Benjamin Cowen highlights similarities between Bitcoin’s post-ETF launch movement and QQQ’s trajectory in 1999.

QQQ launched at $48-49, surged to $120 in 54 weeks, then struggled above $100 before plunging to the $80 range. Bitcoin followed a similar path, jumping from $48,000 post-ETF launch to its recent high within a comparable timeframe. Historically, QQQ peaked at the 54-week mark, followed by three weeks of declines before a recovery. Bitcoin has already experienced two weeks of correction, indicating a possible third week of downside before relief.

Bitcoin’s post-halving history suggests January corrections are common, with heightened market volatility persisting through winter. Bitcoin dominance is rising, pressuring altcoins and shifting capital toward BTC. If Bitcoin fails to hold key support levels, another price drop could reinforce current market trends.

While past patterns provide insight, markets remain unpredictable. Bitcoin’s price movement aligns with historical trends, but deviations can occur. Traders should monitor key levels, as failure to hold support could signal a deeper correction before the next recovery phase.