Bitcoin (BTC) headed to weekly lows after Tuesday’s Wall Street open as oil-supply woes panicked global markets.
Key points:
- Bitcoin continues its come down from recent highs as new oil fears worsen already shaky market sentiment.
- US President Donald Trump avoids hints of lifting the Strait of Hormuz blockade.
- BTC price action falls below $76,000 as a week’s gains evaporate.
Bitcoin, stocks extend losses on Hormuz oil nerves
Data from TradingView showed BTC/USD dipping under $76,000 as US stocks also opened lower.
BTC/USD four-hour chart. Source: Cointelegraph/TradingView
The US-Iran war lay behind risk assets’ cold feet, with oil taking center stage amid the ongoing blockade of the Strait of Hormuz.
WTI crude oil returned to $100 per barrel on the day, as US President Donald Trump continued to keep markets guessing on the outcome of the Hormuz impasse.
“Iran has just informed us that they are in a ‘State of Collapse,’” he wrote in a post on Truth Social.
“They want us to ‘Open the Hormuz Strait,’ as soon as possible, as they try to figure out their leadership situation (Which I believe they will be able to do!).”
Source: Truth Social
Commenting, trading resource The Kobeissi Letter noted the ongoing impact on Asian countries, with Iran rapidly running out of oil storage capacity.
“Asia’s energy crisis will soon intensify even further,” it predicted in a post on X.
Crypto sources also drew attention to the impact of oil on market mood, among them onchain analytics platform Glassnode.
“Disruptions in the Strait of Hormuz persist due to stalled US-Iran talks, tightening supply and spooking markets across the board,” it told X followers on the back of the WTI jump.
CFDs on US WTI crude oil four-hour chart. Source: Cointelegraph/TradingView
BTC price breakout hopes fade into monthly close
BTC price action thus continued to shy away from attacking $80,000 after sealing a weekly candle close above a key resistance trend line.
Related: Bitcoin price set for best gains since Q4 2024 with $77.5K monthly close
Instead, the two recent visits to $73,000 made market participants wary of calling a “double bottom” formation too early.
“So far, $BTC bulls aren’t showing much enthusiasm for a robust double bottom bounce. Expecting to see volatility increase as we move to and through the monthly close,” trading resource Material Indicators commented.
An accompanying chart showed exchange order-book liquidity and whale orders, with only the largest class of investors stepping in to buy.
BTC/USDT order-book liquidity data with whale orders. Source: Material Indicators/X
Others also demanded more proof that bulls could crush the multiple resistance levels immediately above spot price, including the bear market support band.
“We’ll need to see follow up to actually confirm a proper breakout though. But at least the bulls are putting in an effort for now,” trader Daan Crypto Trades wrote on X.
BTC/USD one-week chart with bull market support band, moving averages. Source: Daan Crypto Trades/X
