Bitcoin fell towards $53,000 on Tuesday as US stocks rallied, breaking away its tradition of tailing riskier assets even as bond yields and the US dollar dipped.
The benchmark cryptocurrency was down 1.13 percent to $53,500 per token ahead of the L0ndon opening bell. Bitcoin futures on the Chicago Mercantile Exchange dropped by more than 4 percent to $53,475 around 0600 UTC. At its intraday low, Bitcoin was trading at 53,000.
“It’s a due trip to oversold,” said Scott Melker, an independent analyst associated with the Wolf Den Newsletter, referring to Bitcoin’s relative strength indicator (RSI) that earlier alerted about its technically overbought status. An RSI reading above 70 typically leads to a neutralizing downside correction.
Bitcoin RSI nears oversold area. Source: BTCUSD on TradingView.com
Bitcoin and Rival Markets
Simultaneously, Bitcoin’s latest decline largely coincided with a renewed demand for the US dollar against the Turkish Lira’s crash on Monday. The cryptocurrency typically reacts inversely to the greenback’s trends. The US dollar index was firm in the previous session but rose 0.15 percent on Tuesday.
Bitcoin further lost appeal as investors’ focus shifted towards Wall Street, with the tech-heavy Nasdaq Composite gaining 1.2 percent by the market close in New York. The benchmark S&P 500 rose 0.7 percent at the same time. Bitcoin was earlier trading in tandem with tech stocks.
Meanwhile, the US Treasuries pared losses, sending the 10-year note yield lower to 1.699 percent after briefly trading above 1.75 percent last week.
Global stock rally halted on Tuesday, with Asian markets falling alongside the …
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