Bitcoin sits out the AI rally, slips 1.3% as $73,800 support eyed

Bitcoin was down 1.3% on Tuesday morning, a day after it closed Monday up just 0.7% — barely a flicker compared with the Nasdaq 100, which ripped 3.4% higher in a single session. According to cryptodaily.co.uk, that one-day index surge is equivalent to roughly $1.1 trillion to $1.3 trillion, and a heavily oversold AI trade did much of the heavy lifting. Gold and silver also got in on the move.

The chart is doing the talking now. On the 4-hour timeframe, bitcoin is bunching below a pair of parallel channels but holding above horizontal resistance at $73,800, with a descending trendline recently retested and a small descending wedge forming. The read from cryptodaily.co.uk: a weak bounce followed by another roll-over won't cut it — it's a strong break higher, or $69K.

Zoom out to the daily and the decline doesn't look finished, though the 200-day simple moving average and a decent horizontal support sit right at current levels as a possible brake. Lose both, and the next stop is the top of the 2021 bull market at $69K — the same price bitcoin traded five years ago.

The weekly MACD tells a stranger story. Historically, every crossover of the blue MACD line below the red signal line has ended in a dramatic correction, but this time the price topped a couple of months ago — an eight-week gap that the outlet notes is a stretch even for a lagging indicator, raising the question of whether the lines cross shallowly or not at all.

Underneath it all sits a possible giant inverse head and shoulders pattern, whose right shoulder could sink all the way to the bull market trendline without breaking. Cryptodaily.co.uk puts the upside target from that formation as high as $116K. For context, silver has just dropped back to the level it last hit in 1980, which the outlet calls rather bullish from here.