The price trend of Bitcoin has not strengthened with the improvement of the stock market; a selling barrier above $83,000 has kept BTC within a narrow range.
After the opening of Wall Street on Monday, Bitcoin ( BTC ) fell below $82,000, due to a divergence between the crypto market and the upward trends of the stock market and U.S. Treasury yields.
Key points:
- Bitcoin gave back some of its gains from the beginning of the week due to increased liquidity of sell orders above $83,000 on major exchanges.
- The Nasdaq Composite Index followed the rise in Asian stock markets, climbing 1.5% in the first few hours after opening on Monday.
- U.S. Treasury yields continued to rise in tandem with the stock market, with the 10-year yield returning to 5.13% before the release of major companies' financial reports.
TradingView data shows that BTC / USD fell to a low of $81,678 on Bitstamp, after having risen to $83,062 at one point during the session.
Asian and U.S. stock markets both rose at the beginning of the week, helping to recover some of the losses from last week, with the pressure on tech stocks easing. South Korea's KOSPI Composite Index, which has a high weight of tech stocks, closed up 1.76% at 5,768 points; as of press time, the Nasdaq Composite Index was up 1.5%.
Continuing the pattern of the past few weeks, before markets expect large tech companies to release strong financial reports, U.S. Treasury yields have risen in tandem with the stock market. Companies such as Meta, SpaceX, and Tesla will report their earnings on Tuesday and Wednesday. The yields on 10-year and 30-year U.S. Treasuries have risen to 5.13% and 5.46%, respectively.
"Wider stock deleveraging trends could spread to the cryptocurrency market and, if sustained, threaten the $80,000 support level. On the contrary, if accompanied by a decline in real yields and a weakening of the dollar, a continued rebound in U.S. Treasuries could provide support for risk assets," the article states.
Sellers above $83,000 are suppressing the price of BTC.
In a relatively short period, as the liquidity of sell orders above $83,000 in the exchange order book increased, the price trend of Bitcoin encountered resistance.
CoinGlass data shows that this selling order wall has put pressure on BTC / USD, and the total cross-cryptocurrency settlement amount in the past 24 hours reached 335 million US dollars.
CryptoQuant summarized, 'The decline in the whale ratio indicates that the proportion of large BTC deposits in the total inflows to the exchange is decreasing, which may reflect changes in whale trading strategies and asset management activities.'
