Thursday morning was active in the cryptocurrency market. Bitcoin fell sharply in the US earlier in the day, losing more than 2 percent within minutes to around $73,500. In the last 24 hours, the largest cryptocurrency lost more than 1 percent. This sudden downward move appears to come after Bitcoin struggled to surpass the $75,000 level once again.
Critical resistance levels and market reaction
Bitcoin’s $75,000 to $76,000 range has recently stood out as a technically important threshold. It is argued that if this limit is permanently exceeded in the market, the price may start a new upward wave and open up space to around $90,000 at the beginning of the year. However, the selling pressure seen after the blockage at this level also had an impact on the crypto market in general.
At the same time, there was a short-term pause in the Nasdaq and S&P 500 indices, which broke records in the US stock markets the previous day. In the early hours of the trading day, both indices fell by about 0.1 percent.
Crypto-related stocks also decline
The sales wave in the cryptocurrency market was also reflected in public companies affiliated with the sector. Coinbase, MicroStrategy, Robinhood and Circle stocks lost 2 to 3 percent in the morning hours. These companies are losing value in line with the volatility in crypto prices.
On the other hand, as global geopolitical tensions increased uneasiness about energy supply, oil prices increased by approximately 2 percent and reached 90 dollars.
Relationship between Bitcoin and software stocks
Before the conflicts that started in the Middle East at the end of February, Bitcoin and software stocks were moving almost identically. The correlation of the cryptocurrency with the software index called IGV was particularly striking. However, it has been observed that Bitcoin has performed better compared to this index in recent months.
While Bitcoin has risen over 11 percent since the start of the conflict, IGV has lagged behind with an increase of 2 percent. This situation was interpreted by some analysts as Bitcoin starting to differentiate from technology stocks.
However, looking at the performance of the last 5 days, it is noteworthy that the recovery in the software sector has accelerated. While IGV gained nearly 11 percent in value in this short period, Bitcoin followed a horizontal course. This chart is considered to indicate that the software index temporarily lagged behind but is now closing the gap.
Although Bitcoin’s return to the $75,000-$76,000 range has raised bullish hopes in the market, the rapid pullback suggests that resistance levels remain strong in the short term.
