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Bitcoin bulls gave up their latest mission to reclaim $70,000 as Iran escalation sparked oil supply fears that gripped stocks and gold.
Bitcoin (BTC) erased its latest trip to $70,000 on Tuesday as Middle East tensions sparked a global asset sell-off.
Key points:
Bitcoin and major asset classes all fall after the closure of the Strait of Hormuz.
Oil sees upside volatility while even gold fails to offer protection from uncertainty.
BTC price action again fails to hold $70,000 or nearby trend lines.
Oil keeps BTC price firmly below $70,000
Data from TradingView tracked 3.2% BTC price losses on the day as $66,000 came back into focus.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
Bitcoin joined stock markets worldwide in considerable weakness amid concerns over oil supplies and inflation, thanks to the closure of the Strait of Hormuz.
The S&P 500 and Nasdaq Composite Index were both down by around 2% after the Wall Street open, while gold also fell, targeting $5,000 support.
CFDs on WTI oil one-day chart. Source: Cointelegraph/TradingView
“The market is beginning to price-in a longer war,” trading resource The Kobeissi Letter wrote in a response on X.
BTC/USD again failed to flip key trend lines to support — something that led Keith Alan, cofounder of trading resource Material Indicators, to conclude that bears remained in control.
“So far $BTC bulls have failed to muster any momentum,” he told X followers.
“After losing the 2021 Top and the 21-Day SMA again, I’m having flashbacks to March - Nov 2024 when we endured 8 months of consolidation in this range. Nothing about Monday's rally has the DNA of a bull recovery.”
BTC/USD one-week chart. Source: Keith Alan/X
Others were hopeful on shorter time frames, noting Bitcoin's comparatively stable response to the ongoing geopolitical crisis.
Gold down 6%.
Silver down 11%, 20% in 2 days.
Platinum down 13%.#Bitcoin only down 3%.
It's still stuck in the range, and obviously volatility is high during these events.
Lower side of the range = buying opportunity. pic.twitter.com/baVI66tMUt
“Not doing the worst since the escalation in the middle east. Actually outperforming stocks & precious metals for a change,” trader Daan Crypto Trades commented on the day.
“Now we haven't really seen it move up either as it is mostly holding steady in this same range. But good to keep an eye on. The sign of strength you'd want to see is if BTC also joins in on the eventual bounce stocks & metals will see.”
Macro asset performance comparison. Source: Daan Crypto Trades/XGold weakens amid hopes of Bitcoin influx
Earlier, Cointelegraph reported on how rising oil prices tend to impact BTC price action.
Related: ‘This is not World War III:’ Five things to know in Bitcoin this week
Nik Bhatia, founder of global macro research company The Bitcoin Layer, meanwhile, described gold as “absolutely smashed.”
“Gold looks very toppy at worst and technically damaged at best,” he wrote on X while acknowledging year-to-date gains of 16%.
CFDs on gold one-day chart. Source: Nik Bhatia/X
Last week, crypto trader, analyst and entrepreneur Michaël van de Poppe hoped that a potential capital rotation from gold to BTC was already getting underway.
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