Bitcoin Falls Below $74,000 as Uptrend Fails to Gain Momentum

Bitcoin experienced a sharp decline in US morning trade on Thursday, dropping 2% in a matter of minutes after failing to break through the increasingly resistant $75,000-$76,000 range. The cryptocurrency's price fell to around $73,500 during the US morning session, marking a decline of over 1% in the past 24 hours. This pullback occurred after bitcoin once again rose above $75,000, only to be met with resistance. The stock market rally, which had driven the Nasdaq and S&P 500 to record highs the previous day, also took a pause, with both indices down approximately 0.1% about an hour into the session. Crypto-related stocks also saw a decline, with Coinbase, Strategy, Robinhood, and Circle all down roughly 2%-3% in morning trading. Meanwhile, crude oil prices rose about 2%, regaining the $90 level, as ongoing geopolitical tensions continued to impact supply concerns. The $75,000-$76,000 range is crucial for bitcoin, as it represents the level at which the cryptocurrency traded before the February 5 market crash that sent its price down to $60,000. A successful break above this level could potentially lead to a larger move, driving prices back up to the $90,000 mark at which bitcoin started the year. Notably, the correlation between bitcoin and software stocks, which had been closely tied prior to the Middle East conflict at the end of February, appears to be reestablishing itself. While bitcoin has outperformed the software ETF (IGV) since the conflict began, with an 11% gain compared to IGV's 2% rise, the latter has been catching up over the past five days, with an 11% increase, whereas bitcoin has remained flat. On Thursday, IGV saw a 1% gain, while bitcoin declined by 1.5%.