Despite the recent bounce, the correction isn't over, said one technical analyst, expecting bitcoin to fall to the low-mid $50,000 area before rallying to new all-time highs.
-Digital assets performed mixed, with BTC sinking 1.5% while Solana's SOL and XRP gaining most among crypto majors.
- Robinhood disclosed its crypto arm received warning from the SEC that could foreshadow enforcement action.
- An Elliot Wave technician sets a $92,000 price target for bitcoin's next cycle high
The crypto rally paused on Monday during U.S. trading hours with bitcoin (BTC) slipping back to near $63,300 as U.S. regulators ratcheted up pressure on crypto companies.
A move to above $65,000 early Monday quickly reversed and prices were pressured further after popular brokerage Robinhood (HOOD) disclosed its crypto arm received a Wells Notice over the weekend from the U.S. Securities and Exchange Commission (SEC), a move that often foreshadows an enforcement action against a company.
The pullback has been shallow, though, with most crypto assets firmly above last week's low. BTC declined 1.5% over the past 24 hours but was still up over 10% from Wednesday.
Alternative cryptocurrencies performed mixed, with ether (ETH), dogecoin (DOGE), shiba inu (SHIB) and layer-2 network Polygon's native token (MATIC) sinking 2%-3% during the day, while solana (SOL) and Ripple-adjacent XRP showed relative strength advancing 4%-6%. The broader market gauge CoinDesk 20 Index (CD20) was down 0.3%.
Despite the halt in the rally, crypto hedge fund QCP Capital observed renewed demand for bitcoin call options for September with a strike prices of $75,000 and $100,000, underscoring the increased optimism that BTC will climb to higher prices over the next few months.
"We are seeing some bullish follow-through in volatility and [funding] rates following the reversal bounce from Friday and into the weekend," crypto hedge fund QCP Capital said in a Monday market update.
