Bitcoin prices resurged past the $75,000 mark following the opening of U.S. markets on Monday, buoyed by a recovery in technology stocks that provided partial support to the cryptocurrency market, which had faced pressure over the weekend.
Tech Stocks Drive Market Recovery
According to TradingView data, the BTC/USD pair rose by 0.8% on Monday, after dipping to $73,500 on Sunday, marking the lowest point since August 21. This market weakness coincided with allegations that Nvidia’s CEO, Jensen Huang, might have been targeted by Chinese intelligence, claims that were firmly denied by Beijing. Nvidia shares dropped 6% to $170.24 in early trading before recovering to $179.92, underscoring its pivotal role in the technology sector with its AI chips.
Dan Ives, a senior executive at Yorkville Ives & Co., stated, “This situation could exert significant reputational pressure on Jensen Huang and impose a lasting burden on Nvidia’s stock.”
Despite the setback, investors capitalized on the pullback in tech stocks as a buying opportunity. The tech-heavy Nasdaq Composite Index jumped between 2.5% and 2.6% during the first hour of the U.S. session, displaying resilience beyond the Nvidia controversy.
Oil Price Declines Create Room for Risky Assets
A drop in oil prices also provided a reprieve for stocks and Bitcoin. U.S. crude oil, known as WTI, fell to $86.19 per barrel, the lowest level since September 1, before rebounding to around $88.20. Economist Robin Brooks reiterated that a negative correlation between oil and assets like gold, Bitcoin, and the S&P 500 has emerged since a September attack on Saudi Arabia’s East-West Pipeline.
Robin Brooks emphasized, “Even if this correlation weakens over time, it seems reasonable to expect that lower oil prices will support these risk-laden assets.”
Technical Outlook Suggests Potential Dip to $67,755
On Monday, Bitcoin traded within a narrow range bound by the 21-week and 50-week simple moving averages, at $73,078 and $75,492, respectively. Keith Alan, co-founder of Material Indicators, noted the potential for downward testing persists in the current market structure. He pointed out that the macro landscape and thin order books could drive prices toward the 200-week simple moving average of $67,755, although conditions have been gradually improving on a weekly basis. Material Indicators monitors market liquidity and order flows through its crypto trading platform.
Meanwhile, liquidations in the cryptocurrency market continued at elevated levels. CoinGlass data indicated that total liquidations reached $1.2 billion by Monday evening based on local time.
