Bitcoin remained steady near the $65,000 level despite a sharp decline in Nvidia and other AI-related technology stocks. Analysts say this week’s Federal Reserve decision could determine whether BTC breaks out of its current range or falls back toward June lows.
Bitcoin and the broader crypto market showed relative strength on Monday, even as AI-focused equities faced renewed selling pressure.
BTC traded around $65,000, marking a gain of about 4% since Friday, while Ethereum reached its highest level in nearly two months. At the same time, Nvidia dropped 4.8%, dragging other AI-linked stocks lower, though the Nasdaq remained mostly unchanged as gains from major technology companies such as Apple, Microsoft, and Google helped offset the losses.
However, this resilience is about to face a major challenge.
With the Federal Reserve’s interest rate decision, important U.S. inflation figures, and earnings reports from leading technology companies all scheduled this week, analysts believe the upcoming events could determine whether Bitcoin finally escapes its months-long consolidation phase or retreats back toward June’s lows.
Technical Outlook Shows Signs of Strength
Joel Kruger, market strategist at LMAX Group, said crypto’s ability to withstand volatility in traditional markets is a positive development.
He noted that the recent performance supports the idea that digital assets may be starting to separate, at least partially, from traditional risk assets.
Kruger said Bitcoin needs to break above $67,300 to confirm a move beyond the multi-week range that has limited price action since June. A sustained move above that level could open the door for further gains, while Ethereum faces a similar resistance point around $2,000.
Tom Lee, chairman of Bitmine and co-founder of Fundstrat, also highlighted Ethereum’s recent strength compared with Bitcoin as a positive sign for the broader crypto market. The ETH/BTC ratio, which tracks Ethereum’s value relative to Bitcoin, reached a three-month high on Monday.
Questions Remain Over Rally Strength
Despite the recent stability, some analysts remain cautious about Bitcoin’s recovery.
Nansen senior research analyst Nicolai Sondergaard said the rebound lacks the strong demand typically associated with the beginning of a lasting rally.
According to Sondergaard, the market is simply holding within its range rather than building momentum for a breakout.
His current outlook suggests Bitcoin could fall back toward the $52,000–$58,000 zone unless broader market conditions improve.
Although nearly 9,000 BTC moved off exchanges over the past week, Bitcoin futures open interest has declined even as prices moved higher. This suggests traders may be reducing risk rather than increasing bullish exposure. Order-book data also continues to show signs of net selling pressure.
Sondergaard said the Federal Reserve’s decision and the messaging that follows will likely determine the direction of risk assets on Wednesday. Investors will also be watching Thursday’s core PCE inflation data, second-quarter GDP figures, earnings from Microsoft, Meta, Apple, and Amazon, along with Friday’s estimated $13 billion–$14 billion Bitcoin and Ethereum options expiry.
For Nansen to adopt a more bullish view, the firm wants to see stronger stablecoin inflows to exchanges, continued spot Bitcoin ETF demand, and evidence that long-term holders have stopped selling at losses.
Until those signals emerge, Sondergaard views the current recovery as a short-term positioning rebound rather than the beginning of a sustained uptrend.
About The Author
More Stories
Bitcoin Slides as South Korean Market Rout and Crypto Bill Delay Weigh on Sentiment
SK Hynix Perpetual Contract Suffers Sudden Collapse to $900 on Hyperliquid
Hong Kong Central Bank Warns Banks Lag Behind in Quantum Security Readiness