Bitcoin Lags Below $67,000 as Dow Tests Major Resistance Zone

Despite this week's broad risk-on rally, Bitcoin continues to trade below $67,000 while the Dow Jones Industrial Average tests a major four-year resistance zone near 54,700.

The Dow Jones was the first major US equity index to lead the rally, driven by optimism surrounding a potential US-Iran agreement. However, it's now testing the upper boundary of its four-year ascending channel and monthly momentum has reached overbought levels last seen in 2018.

A sustained break above the 54,700-55,000 resistance zone would reinforce the long-term bullish outlook, turning the upper boundary into a new area of support. However, geopolitical risk premiums remain embedded in financial markets, leaving the current rally vulnerable unless the Dow secures a decisive breakout above 55,000.