Bitcoin traders closely watched price action over the weekend after BTC recovered 6.5% from a local low near $59,100 to an intraday high of approximately $62,950 on Sunday, reinforcing the significance of the $60,000 psychological support level.

The recovery stood in contrast to a sharp selloff in equities, as the Nasdaq Composite plunged more than 4% on Friday in its steepest single-day decline since April 2025. The divergence has revived speculation that risk capital may rotate from technology stocks back into Bitcoin.

Bitcoin Holds the 200-Week Moving Average

Veteran analyst Filbfilb highlighted in a Sunday post that Bitcoin is holding above its 200-week simple moving average (SMA), currently situated near $61,880. This moving average has historically served as a reliable long-term price floor, having provided support during the bear market lows of 2015, 2018, and 2020.

If Bitcoin sustains its position above this level, traders may interpret the recent breach below $60,000 as a shakeout rather than a structural breakdown. In that scenario, the 50-week SMA near $92,630 becomes the next significant upside target.

Nasdaq Correction Risk Remains Elevated

Technical analysis of the Nasdaq suggests further downside may be ahead. The index's weekly relative strength index (RSI) fell to 62.46 from approximately 74.75, a notable shift from overbought territory. Historical data shows that every major drop from above 70 to below 70 on the weekly Nasdaq RSI since 2021 has resulted in a move back toward the 20-week moving average, currently near 22,905 points.

Should that pattern repeat, the Nasdaq could decline a further 10.75% from current levels by late June or July, which would intensify pressure across risk assets globally. However, Bitcoin's ability to hold its long-term support while equities continue to weaken could serve as a catalyst for a sharp mean-reversion rally.

BTC/Nasdaq Ratio Reaches Record Oversold Territory

The ratio of Bitcoin's price relative to the Nasdaq has reached a historically oversold reading. On Saturday, the daily RSI on the BTC/Nasdaq ratio dropped to 14.70, the lowest level ever recorded. The previous all-time low of 14.88 was set in February, which preceded a recovery of more than 30% in BTC prices over the following weeks.

This metric effectively shows that Bitcoin has become unusually cheap relative to tech stocks, a condition that has historically attracted buyers and preceded significant price recoveries. With the same setup appearing again, market analysts are pointing to the possibility of a sustained rebound in BTC prices in the weeks ahead.