Bitcoin Pulls Back Below $67K; Is Another Crypto Rally Failing?

Following a failed challenge of the $70,000 level during early Monday trading hours in Asia, bitcoin (BTC) fell below $67,000 in U.S. morning action.

Recently, bitcoin’s price was lower 2.3% over the past 24 hours, underperforming the broad-market CoinDesk 20 Index’s 1% loss during the same period. Ethereum’s ether (ETH) was also down nearly 1%, while litecoin (LTC), polkadot (DOT) and the internet Computer Protocol’s token (ICP) led losses with 4%-5% declines.

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Bitcoin mining stocks also suffered, but one outlier was TeraWulf (WULF), which recently pivoted to high-performance computing to power artificial intelligence (AI) data centers. It’s higher by 12% on Monday.

Checking possible catalysts for today’s action, one need look no further than the recent price movement: bitcoin had risen in near-continuous fashion since dipping to just under $60,000 eleven days ago – a modest reversal was surely in the cards at some point. There’s also been a sharp rise in interest rates across Western economies on Monday, among them 10 basis point gains in both the U.S. 10-year Treasury yield and the German 10-year Bund yield. Other things being equal, higher rates can often pressure prices of risk assets, bitcoin among them.

Zooming out a bit further, bitcoin – for the moment – remains in the same flat-to-down price channel its been in since recording a record high of $73,700 more than seven months ago. Prior to today, the most recent challenge of the $70,000 level was in late July. It too failed and bitcoin had sunk to under $52,000 days later.

“Wouldn’t be unreasonable to get another HL [higher low] potentially with a sweep of $66K, probably where the next opportunity is,” well-followed analyst Skew said in an X post.

Edited by Stephen Alpher.