Bitcoin Price Holds Steady as Nasdaq 100, S&P 500, and SCHD Retreat

Bitcoin’s price has remained relatively stable, holding above $95,550 despite broader market declines, particularly in major American stock indices and exchange-traded funds (ETFs). As of Saturday morning, Bitcoin was trading above $96,550, even as the U.S. stock market experienced its worst day of the year.

On Friday, the S&P 500 dropped by 1.71%, while the Nasdaq 100 saw a 2% decline, erasing 455 points. The Dow Jones and the Russell 2000, which tracks smaller companies, also fell by 1.70% and 3%, respectively. The Schwab US Dividend Equity ETF (SCHD), which focuses on value stocks, saw a minor retreat of 0.5%.

Tech stocks such as Nvidia, Apple, Microsoft, and Meta Platforms were among the biggest decliners. Despite these stock market setbacks, the CNN Money Fear and Greed Index remained in the “fear” zone at 35, while the Crypto Fear and Greed Index moved into the “greed” area at 38, signaling a contrasting sentiment in the crypto market.

The retreat in both Bitcoin and traditional equities is largely attributed to growing market uncertainty around U.S. tariffs and the Federal Reserve’s monetary policy. The minutes from the latest Federal Reserve meeting showed that most officials favored maintaining a restrictive stance due to persistently high inflation. Recent data revealed that both the headline and core Consumer Price Index (CPI) rose to 3% and 3.3%, respectively, in January, moving further away from the Fed’s 2% target. This hawkish tone from the Fed is generally unfavorable for assets like Bitcoin, which tend to perform better in a low-interest-rate environment.

Additionally, concerns surrounding President Donald Trump’s tariffs, especially on Chinese imports and upcoming levies on goods from Canada, Mexico, and Europe, are further contributing to market volatility. Analysts fear that the potential for increased tariffs could lead to stagflation—a scenario of high inflation combined with slow economic growth—which is challenging for both traditional and digital markets.

Bitcoin’s Chart Indicates Potential Rebound

Despite these macroeconomic challenges, Bitcoin’s chart points to the possibility of a significant rebound in the near future. The weekly chart for Bitcoin shows a bullish flag pattern, which typically indicates a strong breakout after a period of consolidation. The chart also shows that Bitcoin has formed a cup-and-handle pattern, a well-known bullish signal. The depth of this cup is around 78%, which implies a potential price target of approximately $121,590.

The cup-and-handle pattern suggests that after a period of price consolidation (the “handle”), Bitcoin could surge toward the higher target, signaling a robust recovery. If the price reaches the predicted target of $121,590, it would represent a significant upward movement, potentially offering a substantial gain for investors.

While the broader economic environment remains challenging, Bitcoin’s technical indicators are hinting at a potential bullish turnaround. If Bitcoin manages to break out from its current consolidation phase, it could see significant upside in the coming weeks, despite the current market volatility.