As mixed signals surrounded a US/Iran deal, Bitcoin (BTC), a cryptocurrency that has been gaining in popularity for the past 13 weeks, cooled at Wall Street’s opening on Wednesday.
The following are key points.
- Bitcoin’s price falls short of $83,000, as geopolitical factors take over.
- Rumors of the opening of Strait of Hormuz cause oil prices to spike.
- Bitcoin trader notices that the trendline of $78,400 has been reset.
Bitcoins’ attack on $83,000 is affected by Iran deal failure
TradingView’s data shows a new peak local for BTC/USD at Bitstamp of $82,833.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
The pair made fresh gains amid reports of a 14-point ceasefire agreement potentially coming into effect — one that would include resumption of oil traffic through the Strait of Hormuz.
The US president Donald Trump, on the other hand, said that Iran had agreed to terms of the ceasefire hours later. “perhaps, a big assumption.”
“If they don’t agree, the bombing starts, and it will be, sadly, at a much higher level and intensity than it was before,” In a recent post, he said that he was adding to the discussion. Truth Social.
Truth Social
Bitcoin has reacted to the news by dropping its price from $81,500, which was the current value at the moment of this writing. It is still around 1% higher than the previous day.
WTI dropped over 10% in just a couple of hours, before bouncing back up to $96/barrel.
WTI crude oil chart for CFDs. Source: Cointelegraph/TradingView
Kobeissi Letter – Commentary on X Trading Resource reported What is it called “unusually large” Short interest in WTI totaled almost $1 billion just before the price drop.
Futures charts for light crude oil. Source: Kobeissi’s Letter
BTC Price Focus Switches to $78,000 or Higher
Bitcoin traders in the meantime, were looking at patches of possible liquidations that appeared on order books to get a sense for where they might be headed next.
Related: Bitcoin can crash to $50K if ‘most critical’ bear market test fails: Analysis
“Above, the $82.4K area still has some left. But price did take out most of the local liquidity from the past day. With price at 3 month highs, we would need to zoom out to see the other major levels,” trader Daan Crypto Trades told X Followers
“Below, the $80.1K & $78.2K levels are good to watch if price were to trade into them.”
Source: CoinGlass.com. Screenshot. Source: CoinGlass
Data from CoinGlass Total crypto liquidations for the past 24 hour are more than $600 million. Of this, shorts make up $400 million.
Trader CrypNuevo called BTC/USD “overextended” On short-term timeframes, you can look for a retracement back to the simple moving average of 50 periods on the chart. The amount was $78432.
“Ideally it continues pushing straight higher without any exhaustion signs and it will overextend price even more so the short will be more atractive and worth it when we see those signs at higher prices,” He has written on X.
BTC/USD chart four-hour with 50SMA. Source: Cointelegraph/TradingView
Earlier, Cointelegraph reported Concerns that Bitcoin’s recent breakout attempt would fail due to historical precedent.
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Source: cointelegraph.com
