Bitcoin (BTC), which was boosted by the US-Iran agreement on peace, fell below $75,000 again at Wall Street’s opening Wednesday.
Important points
- Bitcoin diverges from US stock despite positive news about the US-Iran War.
- BTC’s price is now trending down with the oil market, despite improving chances of the Strait of Hormuz being reopened.
- Bitcoin traders are unlikely to be deterred from a new, local low of $70,000 in the next few months.
BTC prices fall with the price of oil after details about Iran’s peace agreement are revealed
TradingView’s data shows BTC/USD falling by as much as 1.2% per day. This is a target for week-to date lows.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
Stocks soared to all-time records when news broke that Iran and the US had signed a Memorandum of Understanding to end the war. Commodities and oil in particular fell instantly.
US WTI Crude dropped as low as $86.77 per barrel in one day. This is its lowest price since April 22.
CFDs on WTI one-day crude oil chart. Source: Cointelegraph/TradingView
Part of the deal, which reportedly sets out a 60-day negotiation period for securing a lasting agreement, includes the reopening of the Strait of Hormuz — a key oil shipping route.
“If a final deal is reached within 60 days, this agreement will be approved in the form of a binding UN Security Council resolution,” The following are some of the ways to get in touch with each other: X post The Kobeissi Letter, a trading resource, stated that the Kobeissi Letter has been able to provide information on recent developments.
Bitcoin, despite implied positive tailwinds, failed to follow the rising trend. continuing a trend In recent weeks, it has moved the other way from US stocks.
“$BTC Indecisive whether to join stocks or commodities today,” trader Daan Crypto Trades responded.
Macro asset comparison chart. Source: Daan Crypto Trades/X
Potential for Exchange Order Book Conditions liquidity grabs Positions on either side of the line are increasing both above and beneath the current price.
“Although most of the liquidity is currently sitting above us, it’s spread out pretty evenly, which doesn’t give a clear target for an upside sweep. Meanwhile, below us there’s a large liquidation cluster around 74k that could pull price toward it,” Trading and Analytics Account CGT Trader commented earlier.
“An upside sweep can’t be ruled out, but imo continuation to the downside is still more likely.”
Heatmap of Binance BTC/USDT liquidity. Source: CoinGlass
Bitcoins “weak and bearish” despite macro tailwind
Bitcoin’s decline has led to a lack of confidence among other market participants.
Related: Bitcoin analysis eyes sharp rebound after BTC collapses below M2 supply ‘fair value’
Commentator Exitpump described BTC Price Action as “weak and bearish,” Next, we could see a drop of up to $72,000.
BTC/USDT 12-hour chart. Source: Exitpump/X
Trading resource Material Indicators added There are still more hurdles to overcome, such as a possible death cross between the simple moving averages of 21 and 50 days.
A chart accompanied the graph, which showed price levels and up/down signals from Material Indicators’ proprietary trading tool.
BTC/USD one-day chart. Source: Material Indicators/X
Eric Coleman is one analyst who has been a decreasingly bullish voice. According to him, the price actions are retesting the peak of a triangle formation on daily timeframes.
“As long as the price is above the horizontal and the trendline support, the trend remains bullish,” He concluded.
BTC/USDT one-day chart. Source: Eric Coleman/X
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Source: cointelegraph.com
