BTC remains 'stuck' near $78K while oil prices pose renewed threat to risk assets
Bitcoin's journey toward $80,000 hits a roadblock as uncertainties loom over risk-asset recovery amid ongoing US-Iran tensions.
Bitcoin (BTC) remained firmly anchored near $78,000 on Friday as markets continued "awaiting clarity" from the ongoing US-Iran conflict.
Key points:
- Bitcoin's attempt to reclaim $80,000 faces headwinds, with US equities trading flat.
- Robust earnings reports will be necessary to maintain momentum in stock markets, according to analysis.
- Support levels for BTC price could be vulnerable to breakdown in the near term.
Bitcoin participates in risk assets "chopping sideways"
Information from TradingView showed BTC price action remaining relatively unchanged heading into the final Wall Street session of the week.
In the absence of new geopolitical developments, risk-asset drivers offered a contradictory outlook, resulting in lateral price action for US equities. After approaching a potential test of the $100 level, WTI crude oil retreated to $95.
"$BTC & Stocks started the week off strong as metals have sold off. But as $OIL has been starting to move again the past few days, risk assets have stalled and are now chopping sideways," trader Daan Crypto Trades responded in a post on X.
"Market is eagerly awaiting clarity from the conflict in the middle east. The longer it drags on and oil keeps moving higher, the more pressure will be put on these."
One day earlier, trading resource Mosaic Asset Company indicated that strong earnings reports would prove critical to maintaining upward momentum in equity markets, with the S&P 500 having already achieved new all-time highs.
"With the first quarter reporting season about to pick up, it will be crucial to monitor forward earnings estimates for any changes in trend since the start of the year," it wrote in its latest analysis.
Analyst "surprised" that BTC price support holding
Turning attention to BTC/USD, trading resource Material Indicators suggested early indications of a more substantial pullback ahead.
"Bid liquidity at $76.5k already rugged, as predicted yesterday, and LTF order flow is trending down," it wrote on X, referring to data from one of its proprietary trading tools.
Material Indicators added that it was "surprised" that bid liquidity below spot price had not been pulled.
Trading account JDK Analysis pointed to a "news-driven pump" as additional confirmation that the recent low-time frame rally had extended beyond sustainable levels.
"The profile shows $BTC at the upper value extreme of the past two days," an X thread read, analyzing exchange order-book data.
