Crypto Market Pulls Back as Stocks Hit Record Highs

The cryptocurrency market has pulled back to the lower end of its consolidation range since May, with the upward trend seen in the first week of the month failing to gain momentum.

This pattern repeats itself from June and July when bullish attempts also faded, confirming the theory of an inverse correlation between cryptocurrencies and stocks. The stock market has been reaching new record highs, while buyers have focused on traditional sectors rather than tech stocks.

Among the most actively traded cryptocurrencies, BTC surged over 10% in the past 24 hours, while most others declined, with the biggest losses recorded by LUNA, AVAX, and NEAR.

Bitcoin plummeted below $63K, retreating to its low from last week and dropping below its 50-day moving average. This marks a prolonged consolidation around the 200-week moving average that we have repeatedly warned about.