Bitcoin ( BTC ) returned above $75,000 after the opening of Wall Street on Monday, due to a rebound in tech stocks.
Key points:
- As investors increased their exposure to tech stocks, Bitcoin rebounded from its 11-week low of $73,500 reached on Monday.
- The stock market shook off the controversy surrounding NVIDIA CEO Jensen Huang, and the Nasdaq Composite Index rose by 2.6% on Monday.
- Bitcoin price analysis indicates that the price may fall back to the 20-week simple moving average trend level of $67,755.
Bitcoin and the stock market shake off the disruptions caused by NVIDIA
Data from TradingView shows that BTC / USD has risen by 0.8%. Previously, it fell to $73,500 on Sunday, hitting its lowest level since August 21st.
BTC / USD One-hour chart. Source: Cointelegraph / TradingView
This weakness came alongside a report that NVIDIA CEO Jensen Huang might have become a target of Chinese intelligence operations, although Beijing later denied this claim. NVIDIA's stock price fell by about 6% at the beginning of trading on Monday, to $170.24, returning to the level seen since March 31, before rebounding to a high of $179.92 during the session.
NVIDIA daily stock price chart. Source: Cointelegraph / TradingView
Yorkville Ives & Co. Dan Ives, Senior Managing Director of Merchant Bank (Dan Ives), warned in a memo on Sunday that this incident could put sustained pressure on NVIDIA's stock price.
According to CNBC, he said, "This is an embarrassing moment for Jensen Huang; it will at least trigger several congressional investigations and, for various reasons, put pressure on this stock."
Gary Gensler, former chairman of the U.S. Securities and Exchange Commission (SEC), stated that NVIDIA's board of directors will face a "difficult choice" based on the results of an internal investigation into the company.
On the other hand, investors bought into tech stocks at lower prices, and the NASDAQ Composite Index, which has a high weight of tech stocks, managed to break away from any negative news related to NVIDIA in the hour before the U.S. trading session, rising by 2.5%.
Nasdaq Composite Index one-hour chart. Source: Cointelegraph / TradingView
The decline in oil prices also helped boost the stock market and provided some respite for the downward trend of Bitcoin itself. US WTI crude oil once fell to $86.19 per barrel on that day, hitting its lowest level since September 1st, before rebounding to around $88.20.
WTI Crude Oil Spread Contract Daily Chart. Source: Cointelegraph / TradingView
"Even if this correlation may weaken to some extent in the future, there is reason to believe that a decline in oil prices could boost these risky assets," he concluded.
Bitcoin price reaches a new target near $68,000
On Monday, BTC / USD fluctuated within a narrow range between the 21-week and 50-week simple moving averages, at $73,078 and $75,492 respectively.
Commenting on the current market structure, Material Indicators, co-founder of the cryptocurrency trading platform, and Keith Alan believe that prices may fall back to the 20-week simple moving average of $67,755. The last time this trend line interacted with prices was in mid-August. Meanwhile, Alan believes that conditions on the weekly time frame are slowly improving.
He said to his followers on X: "The macro structure and thin order book mean that there is still room for prices to fall before a breakout is confirmed. Such a test is possible, but not inevitable – and it doesn't have to happen this week. In fact, the weekly perspective is starting to tilt bullish."
BTC / USD Daily chart, including 21-day, 50-day, and 200-day moving averages. Source: Cointelegraph / TradingView
CoinGlass data shows that the crypto market clearing remained high in the first half of Monday. As of 5 p.m. on UTC, the total amount over the past 24 hours reached 1.2 billion US dollars.
Encrypted settlement history (screenshot). Source: CoinGlass
