Bitcoin Price Dips Below $64k Amid Tech Stock Decline
Today, the price of Bitcoin dips below $64k as the decline in tech stocks spills over into the cryptocurrency realm.
FUNDAMENTAL OVERVIEW:
On Thursday, Bitcoin experienced a decline due to diminished risk appetite, influenced by a downturn in major U.S. technology stocks, which consequently affected the cryptocurrency markets—additionally, the anticipation surrounding interest rate indicators added to the downward pressure.
Over the previous 24 hours, the largest cryptocurrency in the world experienced a 3.9% decline, dropping to $63,984.9 by 07:50 ET (11:50 GMT).
The correlation between Bitcoin and technology stocks is once again evident.
The decline in Bitcoin closely paralleled the decrease in major U.S. technology stocks, which followed a revenue forecast from Meta Platforms Inc (NASDAQ: META) that fell short of expectations.
Bitcoin typically aligns with the movements of U.S. technology stocks, as both sectors are perceived as avenues for high-return speculative investments.
However, Bitcoin’s correlation with the technology sector has become evident once again in recent weeks. This resurgence occurred as the excitement surrounding the ETF diminished, and both sectors encountered renewed downward pressure amid expectations of sustained higher U.S. interest rates.
Bitcoin has experienced a decline of approximately 8% in the last month.
BITCOIN TECHNICAL ANALYSIS DAILY CHART:
Technical Overview:
Bitcoin is trading within an up channel.
Bitcoin is moving below all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in a Neutral zone, while the Stochastic oscillator suggests a Negative trend.
Immediate Resistance level: 64628.83
Immediate support level: 62286.31
HOW TO TRADE BITCOIN
After a sharp rise, Bitcoin encountered resistance and ceased its upward trajectory, reversing course to the downside. Subsequently, it entered a consolidation phase within a certain range. It has breached the previous day’s low and is trading lower. This presents a potential selling opportunity upon any upward movement.