Bitcoin (BTC), which is the digital currency, fell back to $66,000 on Tuesday after Wall Street opened as shares consolidated their gains.
Important points
- Bitcoin continues to climb, but its price is cooled by the recent stock market gains on US peace plan.
- Crypto struggles to take advantage of the positives. Oil prices are at their lowest level in three months.
- BTC prices still have a limit of $70,000 for current price increases.
BTC drops with oil price as stocks move out ahead
TradingView’s data shows that BTC has dropped from its highs of nearly two-weeks.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
The hope that you will be able to a US-Iran peace deal would go ahead kept equities bullish, with the S&P 500 adding over 1.5% on the day, while US WTI crude oil hit three-month lows.
“News of an peace deal between the U.S. and Iran has made headlines frequently in the past. But this time, both sides along with other parties involved with negotiations are confirming the deal,” In the most recent edition of their regular newsletter, trading resource Mosaic Asset Company writes: The Market Mosaic.
“That’s leading to a spillover effect in the stock market, where oil prices and longer-dated bond yields are both pulling back. A negative correlation between stocks and oil prices means the drop in energy prices is a tailwind for equities.”
S&P 500 vs. WTI crude oil one-hour chart. Source: Cointelegraph/TradingView
Bitcoin’s price rose by a significant amount, but traders did not bet on the major BTC rise.
“$BTC Has moved up further back into its range,” Daan Crypto Trades wrote His latest study on X.
“I would not be surprised if we hang around this big area for a few more weeks at least. Especially with Summer coming up and lower liquidity/volatility.”
BTC/USDT chart for the perpetual contract. Source: Daan Crypto Trades/X
Roman joins those who believe that the top local target is likely to be around $70,000.
“Still eyeing the 70k level for our bounce to be completed.,” He told X Followers
“Hourly TFs look good to continue a bit higher. There aren’t any ‘issues’ that I see yet to stop this bounce.”
Bitcoin traders calls “classic market psyop”
The following are some of the ways to get in touch with us. Cointelegraph reportedOther market analyses have cast doubt on the long-term strength of $60,000. They argue that the bear is still too young for it to be finished.
Related: Bitcoin analysis warns over BTC price rejection as $67K approaches
Countering that, Killa said that market makers and algorithms were responsible for luring traders to bet on lows they would never reach.
“Just another classic market psyop,” They are summarized along with a graph of order book liquidity data.
BTC/USD Order-Book Liquidity Data Source: Killa/X
Data from CoinGlass Put 24-hour Crypto Short Liquidations at $230 Million at the moment of writing.
Source: CoinGlass.com. History of cryptocurrency liquidity (screenshot). Source: CoinGlass
Lennaert Snyder commented that the price of gold was heading into a “high-time frame sell zone,” On Tuesday, the target is $68,000.
“The liquidity sub 63.6K looks too juicy to not mitigate, but for the quality short I’d prefer that push to the upside first,” He wrote On X.
BTC/USDT four-hour chart. Source: Lennaert Snyder/X
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Source: cointelegraph.com
