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

In the last day, bitcoin’s value dropped by around 2.3%, performing worse than the general CoinDesk 20 Index which fell by 1%. Similarly, ether (ETH) decreased close to 1%, while litecoin (LTC), polkadot (DOT), and the Internet Computer Protocol’s token (ICP) experienced more significant losses, with declines ranging from 4% to 5%.

Standout performer among them was Solana (SOL), increasing by 2.4% to reach $163, although it fell short of its $170 peak attained over the weekend.

Amidst the decline in Bitcoin mining stocks, an exception was TeraWulf (WULF). This company has recently shifted its focus towards high-efficiency computing for powering AI data centers. On Monday, it saw a rise of 12%.

Today’s Bitcoin activity warrants examination, as its steady climb since dropping to around $60,000 about eleven days ago suggests a potential correction may be imminent. Additionally, there has been an uptick in interest rates across major Western economies today, with the U.S. 10-year Treasury yield and German 10-year Bund yield both increasing by 10 basis points. Generally speaking, rising rates can exert downward pressure on the value of risky assets like Bitcoin.

Looking at a broader perspective, Bitcoin has been moving within a horizontal range between its current position and the peak it reached over seven months ago at $73,700. The last attempt to breach the $70,000 mark occurred in late July, but like that time, this effort was unsuccessful as well. Consequently, Bitcoin’s price dipped below $52,000 shortly after.

It’s not too far-fetched to anticipate another instance of higher low (HL) around the $66,000 mark, according to a well-regarded analyst, who suggested that this could be the next favorable opportunity. [X post]