Markets have done it again. With just hours left until Nvidia earnings report to be released, both Bitcoin and Nasdaq are testing key support levels. The market seems to be saying, “If you’ve got the guts, enter any trade!” 

Despite MicroStrategy’s aggressive Bitcoin buying, the price remains stuck in the 91K–110K range. After a second test of 110K, downward pressure has increased significantly. So, how did Bitcoin get here? 

The crypto market welcomed the decoupling of Bitcoin from the stock market correlation, as this usually limits upward movements in crypto. However, this decoupling seems to strengthen only when the market is rising. This highlights Bitcoin’s increasing weakness after a 50% gain in just a year. Now, with the U.S. market at highly overvalued levels, crypto bulls are growing nervous, except for MicroStrategy, it seems. 

Despite this, Nasdaq and Bitcoin have maintained a 70% correlation over the past twelve months. 

(Nasdaq) 

Nasdaq has tested the 22,000–22,250 zone three times but has been unable to break through. The upward momentum is still intact and will likely continue unless the trend breaks today. 

Both the trendline at 21,330 and the horizontal support near 21,000—two key support levels—are very close to each other. A break of the trendline could be temporary, possibly a bear trap, but if 21,000 also gives way, things could take a turn for the worse. 

(Bitcoin) 

91,000 is a crucial support level for Bitcoin. A break below 91K might seem like a harbinger of doom for crypto traders, but maybe not. Bitcoin tends to make big spikes and fake breakouts around key support and resistance levels. 

After liquidating most leveraged long and short positions, the market will determine the real direction. Today, before or after Nvidia’s earnings report, Bitcoin could drop as low as 87,600, the 38.2% retracement level. However, the true trend may become clearer after today’s potential downward spike. 

For the crypto market to recover, Bitcoin must break above the white trendline in the coming days.