Chart of the Day - Tuesday, June 18, 2024

🏆 Today's Chart of the Day was shared by Eric Conrads (@conradseric).

• The Nasdaq 100 ($QQQ) closed at all-time highs ahead of tomorrow's market holiday. Meanwhile, Bitcoin sank to a one-month low, violating a confluence of support at $66k.

• The two have generally trended together over the years, but they've diverged over the past two weeks. Bitcoin has corrected nearly -10% since the divergence began, while the Nasdaq has gained +6.8%.

• Eric points out that the 20-day correlation is at its lowest since January. Bitcoin caught up to the Nasdaq the last two times it diverged like this in January and November.

The takeaway: Bitcoin and the Nasdaq are sending conflicting messages and only one of them is telling the truth. Traders will be watching crypto extra closely over the next 24 hours, as the stock market will be closed on for Juneteenth.