Bitcoin stalled at the $65,000 resistance level Monday as a broad sell-off in technology stocks weighed on risk sentiment across markets. The cryptocurrency traded in a narrow range around $64,800 after failing to sustain a break above the psychologically significant $65K level, which has acted as a ceiling for much of the past two weeks.
The resistance coincides with what analysts at JPMorgan described as a “record” week for institutional selling in U.S. tech equities. The Nasdaq 100 dropped 2.3% as hedge funds and long-only managers reduced exposure to mega-cap names including Nvidia, Microsoft, and Apple. Bitcoin’s 30-day correlation with the Nasdaq climbed to 0.72, its highest since March, reinforcing the narrative that BTC increasingly trades as a risk-on asset rather than a digital gold hedge.
On-chain data shows mixed signals. While exchange netflows remain slightly negative — suggesting holders are not panic-selling — funding rates on perpetual futures have flipped negative on several major platforms, indicating leveraged traders are betting on further downside. Open interest on CME Bitcoin futures declined 4% over the weekend, a sign that institutional participants are de-risking.
Technical analysts noted that Bitcoin’s failure to reclaim $65K leaves the $60,000-$62,000 zone as the next major support. A daily close below $63,500 could trigger a cascade of long liquidations, with $58,000 cited as a potential downside target if the tech rout accelerates. Conversely, a decisive break above $65K with volume could open the path to $68,000 and the 2024 high near $73,700.
Macro catalysts loom large. The Federal Reserve’s preferred inflation gauge, the PCE price index, is due Friday, and any upside surprise could extend the risk-off move. Meanwhile, the U.S. presidential election cycle is injecting additional uncertainty, with prediction markets showing a tight race that could influence regulatory expectations for digital assets.
For now, traders are watching the $65K level closely. “Until Bitcoin clears this resistance with conviction, it remains range-bound and at the mercy of equity flows,” said one derivatives trader. Source: Cointelegraph
