Bitcoin (BTC), a digital currency, dropped below $78,000 during Tuesday’s Wall Street Open as the risk asset market fell due to renewed Middle East conflict.
The following are key points.
- Bitcoin briefly fell below $78,000 for first time since September 3 following downward pressure on US equity markets.
- WTI crude reached three-month heights around $95 per barrel as a result of renewed Middle East military strikes.
- The analysis says that Bitcoin should hold up to $78,300 to keep from repeating the May crash.
Bitcoin stocks drop as Middle East woes cause oil to surge
TradingView’s data shows that the BTC/USD pair dropped to as little as $77600 before recovering modestly. This is its lowest point since September 3.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
US stock prices were pressured by news of Houthi attacks on Saudi Arabian oil infrastructure and cities, as well as the Houthi’s strikes against Saudi Arabian cities. This was the first session of trading after Labor Day. The S&P 500 and tech-heavy Nasdaq Composite Index were down by 0.5% and 0.4%, respectively, at the time of writing.
S&P 500 one-day chart. Source: Cointelegraph/TradingView
WTI crude soared toward $95 a barrel in response to events. This was its highest level since June 8th. Brent crude aimed for $100 per barrel for the first since July 24,
CFDs on US WTI one-day crude oil chart. Source: Cointelegraph/TradingView
Trading resource The Kobeissi Letter commented on the concurrent rise of US Diesel prices to a record high. “inflation expectations continue to mount as a result.” The following are some of the ways to get in touch with us. Cointelegraph reportedThe Consumer Price Index is a gauge of inflation that measures this. due for release on Friday.
Donald Trump, the US President, downplayed Monday’s oil price spike in a Truth Social posting, promising lower prices for the future.
“Oil prices will drop precipitously, like everything else is dropping (but more!), when we WIN the war with Iran. Three Dollars a gallon, but ultimately, below Two Dollars a gallon,” He wrote.
BTC Price Copying Analysis: May Breakout Failed
Rekt, an analyst and trader, used a cautionary tone when discussing the current BTC market action. They compared it with Bitcoin’s failed break-out in May.
Related: New Bitcoin whales spark sell-side risk as unrealized gains hit $9B
BTC/USD was at $82,800 when it reached that point, before reversed and consolidating around $78,300. It then dropped down to new macrolows of near $57,000.
“The retest of ~$78300 is now in progress,” The author noted in the a post on X.
BTC/USD one-week chart. Source: Rekt Capital on X.com
BTC/USD, should the zone not hold up as support, would make another lower high, continuing a long series that dates back to 2025. Its bear market for 2026 will remain in place.
“Ultimately, a Weekly Close below $78300 followed by a bearish retest just like in early May would likely confirm a breakdown,” Rekt Capital argued Separate analysis of X.
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Source: cointelegraph.com
