Bitcoin price action failed to improve with equities as a sell wall at $83,000 kept BTC in a tight range.
Bitcoin (BTC) traded below $82,000 after Monday’s Wall Street open as crypto diverged from rising stocks and bond yields.
Data from TradingView showed BTC/USD dipping to $81,678 on Bitstamp after reaching $83,062 earlier in the day.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
Both Asia and US equities rallied to start the week, helping to recoup losses from the week prior as selling pressure on tech stocks eased. South Korea’s tech-heavy KOSPI Composite Index finished the day 1.76% higher at 5,768 points, while the Nasdaq Composite Index was up 1.5% at the time of writing.
Nasdaq Composite Index one-hour chart. Source: Cointelegraph/TradingView
Continuing a pattern observed in recent weeks, US bond yields rose in lockstep with equities ahead of anticipated strong corporate earnings by tech giants. Several of these are due for release on Tuesday and Wednesday, including Meta, SpaceX and Tesla. The US 10-year and 30-year yields reached 5.13% and 5.46%, respectively.
US 10-year bond yield one-day chart. Source: Cointelegraph/TradingView
In its latest analysis, trading company QCP Capital saw bond-market stability as key to Bitcoin upside momentum. It also warned that BTC could suffer from a repeat of last week’s tech-stock sell-off.
“Broader equity deleveraging dynamics could transmit to cryptocurrency markets and potentially threaten the $80,000 support level if sustained. Conversely, a sustained Treasury rally could provide support for risk assets, particularly if accompanied by declining real yields and a weaker US dollar,” it wrote.
On lower time frames, Bitcoin price action encountered friction after ask liquidity thickened above $83,000 on exchange order books.
Related: Stocks rebound into key tech earnings: Three things to know in Bitcoin this week
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