The bulls have endured more than seven agonizing months as upward price breakouts have been repeatedly reversed.
Bitcoin (BTC) dropped below $67,000 in morning trade in the United States after an unsuccessful attempt to break above the $70,000 mark during early Monday trading hours in Asia.
The price of bitcoin fell 2.3% in the last day, trailing the 1% decline of the CoinDesk 20 Index, which tracks the overall market. While litecoin (LTC), polkadot (DOT), and the internet computer protocol’s token (ICP) led losses with 4%–5% falls, Ethereum’s ether (ETH) was also down over 1%.
Solana (SOL) was a noteworthy outperformer, rising 2.4% to $163, but it was still below its weekend high of $170.
The shares of bitcoin mining companies also declined, although TeraWulf (WULF), which just switched to high-performance computing to power AI data centers, was an exception. Monday’s price is 12% higher.
One need only look at the recent price movement to determine potential causes for today’s action: bitcoin has gained almost continuously since plunging to just under $60,000 eleven days ago, so a slight reverse was undoubtedly imminent at some point. Monday saw a significant increase in interest rates in all Western economies, including a 10 basis point increase in the yields on the German 10-year Bund and the U.S. 10-year Treasury. When everything else is equal, higher rates can put pressure on the value of risky assets, like bitcoin.
Looking a little farther afield, bitcoin is currently still trading in the same flat-to-down price range that it has been in since topping out at $73,700 more than seven months ago. The last time the $70,000 level was challenged before today was in late July. It failed as well, and days later, bitcoin had fallen to less than $52,000.
In an X post, popular analyst Skew stated, “It wouldn’t be unreasonable to get another HL [higher low], possibly with a sweep of $66K, probably where the next opportunity is.”
Due to the tight correlation between the asset classes, investors’ risk appetite may be affected by the upcoming quarterly earnings reports for U.S. public corporations this week, which might have an impact on cryptocurrencies, according to cryptocurrency trading firm Wincent.
According to a Wincent representative, “it’s a risk off week given the recent performance of BTC and the earnings week in the U.S. adding to a risk off mentality,” the statement was posted on Telegram. “We can expect a brief pullback this week and then watch out for a potential rally and all-time highs as we push into the U.S. elections.”
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