Bitcoin Teeters Just Above $75,000 as Wall Street's Bloodbath Spills Over

Bitcoin is clinging to its last line of defense. The world's biggest crypto slid to just above horizontal support at $75,000 after a savage day on Wall Street, where the S&P 500 fell 4.36% and the Nasdaq tumbled 6.36%. According to cryptodaily.co.uk, that selloff pushed BTC to the very brink of a potential collapse.

One clue about where things go next is sitting in S&P 500 E-mini Futures. The contract dropped to 7,323 points, exactly matching its previous low, then bounced hard off that level. If the bounce holds, the index could climb back to its ascending trendline near 7,550 points — and that recovery could be the shove that lifts Bitcoin away from its danger zone.

Zoom in on the BTC chart and the pattern looks familiar. Thursday's drop is the fifth wave down from the top, and per cryptodaily.co.uk, the previous four all kicked off with red enveloping candles. The open question: did Bitcoin just find its floor, or is a sixth red candle coming that cracks the channel bottom and sends price hunting for the bull market trendline around $66,000?

Zoom out to the weekly and the picture softens. The 50-week simple moving average has backstopped the last two bull markets, and once it turns upward, that's historically the signal the bull run is alive and well. Bitcoin may be closing in on that moment.

If that support fails anyway, the damage could be deep. A breakdown would likely drag Bitcoin toward $69,000, the peak of the 2021 bull market, with major support stacked just beneath at $65,750 — a level that mattered repeatedly in 2021, during 2024's eight-month bull flag, and at the bottom of the recent bear market.

Everything hinges on the stock market. If U.S. equities keep falling hard, Bitcoin could smash through price structures built over years. Whether that happens is anyone's guess — only time will tell.