Bitcoin Drops Below $74,000 After Failing to Break Through Resistance Levels

Bitcoin's price plummeted in Thursday's US morning trade, falling 2% in a matter of minutes after failing to overcome the increasingly stubborn resistance. The cryptocurrency's value sank to approximately $73,500 during the US morning session, marking a decline of over 1% in the past 24 hours. This downturn occurred after bitcoin was once again rebuffed following a rise above $75,000. The stock market rally, which had driven the Nasdaq and S&P 500 to record highs the previous day, also experienced a pause, with both indices down about 0.1% just over an hour into the session. Stocks linked to cryptocurrency also retreated across the board, with Coinbase, Strategy, Robinhood, and Circle all down roughly 2%-3% in morning trading. Meanwhile, crude oil prices surged about 2%, regaining the $90 level, as ongoing geopolitical tensions continued to fuel supply concerns. The $75,000-$76,000 range is crucial for bitcoin, as it represents the level at which the cryptocurrency was trading prior to the February 5 market crash that sent its price tumbling to $60,000. A successful push past this level could potentially trigger a larger move, driving prices back up to around $90,000, the mark at which bitcoin began the year. Notably, the correlation between bitcoin and software stocks, which had been moving in tandem prior to the Middle East conflict at the end of February, has been disrupted. While bitcoin has gained over 11% since the conflict began, the software ETF, IGV, has risen by approximately 2%, prompting speculation about a potential decoupling. However, over the past five days, IGV has surged by as much as 11%, while bitcoin has remained flat, suggesting that software stocks may have simply been lagging behind bitcoin and are now catching up. On Thursday, IGV was up 1%, while bitcoin was down 1.5%.