Bitcoin reversed earlier gains made in Asia, disrupting the initial recovery rallies of significant alternative cryptocurrencies.
The top cryptocurrency by market capitalization dropped below $88,000 after reaching above $90,000, according to CoinDesk data. Notable altcoins such as , ether , solana and also retraced their gains. The CoinDesk 20 Index (CD20) fell back to 2,726, approximately the same level seen in early Asia before reaching 2,789.
This decline aligns with the softening seen in stock index futures. At the time of writing, futures related to Wall Street’s tech-focused Nasdaq 100 Index were down 0.5% for the day, suggesting a cautious trading session ahead.
BTC and the Nasdaq have a strong positive correlation that becomes more evident in Nasdaq downturns, according to Wintermute.
The pullback prompted traders to reduce their leveraged positions slightly. Data from Coinglass indicates that total open interest in futures worldwide dropped to roughly 533,000 BTC from the 540,000 BTC recorded earlier today. Open interest had risen from 524,000 BTC as bitcoin peaked at $90,000.
The cryptocurrency has been noted to underperform during U.S. trading hours, as reported by Laser Digital.
“A noteworthy trend has been the clear underperformance during U.S. hours. Both BTC and ETH witnessed declines of over 3% during U.S. hours last week, contrasted by strength during Asian hours, likely due to selling pressure from year-end tax harvesting as crypto has significantly lagged compared to global assets this year,” analysts from Laser Digital remarked in a Monday analysis note.
John Glover, a chief investment officer at crypto lender Ledn and an Elliott wave expert, expressed a bullish perspective.
“The Bitcoin price chart looks very promising for future higher prices, though there is less certainty for the immediate future. I expect the market to trade sideways to slightly lower in the coming weeks/months and plan to add to long positions between $71k and $84k,” Glover stated in an email to CoinDesk.
