Bitcoin (BTC), as US stock markets opened on Monday in positive territory, sought to consolidate its recent highs.
The following are key points.
- Bitcoin reached new highs in the first US trading session of the week.
- Stocks opened up higher as well, due to relief at the pause between the US and Iran wars. Also positive was the possibility of progress in reopening of Strait of Hormuz.
- BTC’s price action held two daily moving averages at Sunday’s close.
Bitcoin rises with stocks as Iran’s news provides a tailwind for risky assets
TradingView data showed BTC/USD spiked to $66,000 after the markets responded to a temporary pause between US and Iran strikes.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
A spokesman from the Iranian foreign ministry was quoted in additional media as saying that Oman and Tehran were to be united. “trying to establish mechanisms regarding maritime traffic” Through the Strait of Hormuz is a major global oil route that’s currently closed.
US WTI Crude Oil fell towards $82 a barrel Monday, followed by a small rebound. The S&P 500 and Nasdaq Composite Index were both up by around 0.3% at the time of writing.
US WTI Crude oil chart. Source: Cointelegraph/TradingView
Recognizing a possible stumblingblock in the form higher US bond yieldsTrading company QCP Capital stated that it was anticipating positive developments for the cryptocurrency market.
“Digital assets have generally outperformed equities in July despite a more challenging macro backdrop,” In its most recent newsletter, the company wrote: Market Color analysis.
“BTC and ETH are up approximately 11.6% and 24.6% month-to-date, respectively, even as higher Treasury yields and periodic risk-off sentiment have weighed on broader markets.”
QCP made reference to the CLARITY Act as a proposed key component. crypto legislation still under consideration.
“Market attention also remains on developments surrounding the proposed CLARITY Act, which continues to be closely followed by digital asset participants given its potential implications for the US regulatory framework,” It continued.
BTC Price Support Holds but is Fragile
Bitcoin traders are cautious, but also quiet optimistic about the price movement of BTC on smaller timeframes.
Related: Rate path still divides investors: Five things to know in Bitcoin this week
Crypto trader and analyst Michaël Van de Poppe highlighted that BTC was holding the 21-day and 50-day simple moving averages (SMAs) as support. The SMAs were respectively $64,289 et $63,261.
“This is a strong signal for the markets to be betting on the long side of this asset, however, it’s still a little fragile,” He has written in ongoing updates On X.
“I’d much prefer to see a strong move to $66,000-67,000 over the next 1-3 days to see a continuous bid coming in.”
BTC/USDT one-day chart. Source: Michaël Van de Poppe on X.com
The Data of CoinGlass The crypto-short liquidations increased as the market rose. They reached a high of $250 million within a single 24-hour period.
BTC/USD liquidations (screenshot) Source: CoinGlass
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Source: cointelegraph.com
