BTC faces threat of decline under $76K despite 7% plunge in crude oil prices
The leading cryptocurrency declined approximately 1.7% on Monday after equities surrendered initial gains driven by optimism surrounding potential diplomatic talks between the United States and Iran.
The world's largest cryptocurrency Bitcoin (BTC) slipped back underneath the $77,000 threshold following the opening bell on Wall Street Monday, as digital assets dismissed optimism around a potential peace agreement between the United States and Iran.
Key points:
- The price of Bitcoin dropped beneath $78,000 while WTI crude oil reached $95.15 per barrel, marking its lowest point since Oct. 15.
- The precious metal gold expanded its daily increases to 2%, bouncing back from 13-month low levels of $3,891 per troy ounce following a selloff in US equities driven by technology sector earnings reports.
- According to analysis provided by Rekt Capital, BTC price movement was unable to push past $78,500, potentially creating an opportunity for prices to decline toward levels beneath $76,000.
Bitcoin declines as corporate earnings, US midterms eclipse Iran conflict optimism
Information from TradingView indicated that BTC/USD expanded its daily declines to 1.7% following the achievement of a local peak at $78,750 after the conclusion of Sunday's weekly trading period.
Statements regarding Iran delivered by US Secretary of State Marco Rubio triggered a pronounced pullback in crude oil markets as traders incorporated higher probabilities of a resolution that avoids military action. Earlier, President Donald Trump had indicated that armed strikes could potentially resume in the vicinity of the US midterm elections scheduled for Tuesday.
In remarks to members of the press, Rubio indicated Trump's preference would be to conclude the standoff "diplomatically."
"He hasn't made a decision… what the president expresses to you is incredible confidence that if we needed to do something militarily, we would have the ability to do it, and we really we have everything we need to be successful. But we would prefer to do it peacefully," Rubio said, according to CNBC.
US WTI crude oil experienced a decline exceeding 7% during the day at the time of publication, trading near $96.50 per barrel following a bottom at $95.15, representing its lowest reading since Oct. 15. Brent crude experienced a 9% reduction, trading around $103.30.
American equity markets commenced trading on an upward trajectory as market participants responded to the diplomatic developments, however positive momentum for both the S&P 500 and the technology-focused Nasdaq Composite Index was quickly restrained in anticipation of third-quarter earnings announcements from Apple and Palantir. During the previous week, earnings data and Q4 guidance triggered downward volatility throughout risk assets and precious metal markets as concerns regarding AI spending resurfaced. At the time of publication, the Nasdaq Composite Index had climbed approximately 0.2% for the day.
The gold market, in the meantime, maintained its 2% intraday appreciation more persistently, climbing back above $3,950 per ounce subsequent to touching 13-month bottom levels of $3,891 on Friday.
Economics expert Robin Brooks projected gold experiencing further appreciation as crude oil valuations continue their downward trajectory, even following an initial market response in the scenario that military operations against Iran resume.
"The recent drop in gold below 4,000 is entirely about the spike in oil prices we've had since the attack on the Saudi East-West pipeline on Sep. 10," he wrote in a blog post, referencing strikes on Saudi oil infrastructure.
BTC price technical evaluation indicates $76,000 may return
Examining BTC price movement on lower time frames, cryptocurrency trader and technical analyst Rekt Capital cautioned that BTC/USD remains vulnerable to falling beneath local support situated at $76,000.
The three-day timeframe chart revealed that the trading pair had made an unsuccessful attempt to penetrate horizontal resistance positioned at $78,500.
"Indeed, the 3-Day bearish retest was successful and price could very well go below ~$76000," he told X followers on Monday.
Within its most recent technical assessment, trading firm QCP Capital observed that the price range spanning $76,000 to $76,600 had generated an upward price reversal on four separate occasions since September.
"BTC sits between the 76,000–76,600 support band and 79,500–80,500 resistance. A daily close back above $79,500 would recover the band lost on Thursday," it summarized.
"A break of support would bring the 50-week average near $75,700 into view, with the 200-day near $73,100 below that."
