BTC Struggles to Hold $81K Support While Brent Crude Reaches Seven-Month Peak

BTC Struggles to Hold $81K Support While Brent Crude Reaches Seven-Month Peak

Bitcoin fell beneath the $81,000 threshold alongside declining equities as Brent crude reached its peak since March, with attention turning to the 50-day moving average.

Bitcoin (BTC) experienced another decline beneath the $81,000 level following the opening bell on Wall Street Friday as Brent crude oil prices climbed to fresh highs not witnessed in seven months.

Key points:

  • Bitcoin momentarily fell under $81,000 when US markets opened on Friday while equities descended and the US 10-year yield held beneath 5%.
  • Brent crude oil climbed to $116 per barrel, marking the first time since March 19 this level was reached, driven by tensions in the Middle East.
  • BTC price movements concentrated on recovering its 50-day simple moving average positioned at $81,781.

Equity markets decline, treasury yields ease while crude prices spike

Information from TradingView indicated that BTC/USD descended to $80,988 prior to bouncing back to approximately $81,600 during publication.

BTC/USD price chart
BTC/USD one-hour chart. Source: Cointelegraph/TradingView

American equity markets commenced trading with losses as concerns over AI-sector capital expenditures aligned with climbing oil prices stemming from heightened tensions surrounding the US-Iran war.

The S&P 500 alongside the technology-focused Nasdaq Composite Index declined by 0.6% and 0.2%, respectively, during publication. The Dow Jones Industrial Average showed a 1.4% decrease.

With market participants adopting a risk-off approach, the 10-year US bond yield maintained its position beneath 5%, after hitting 4.939% on Thursday, marking their most subdued level since Sept. 23.

US 10-year bond yield chart
US 10-year bond yield one-day chart. Source: Cointelegraph/TradingView

Apprehension that the United States could resume military operations against Iran in proximity to the midterm elections pushed WTI crude oil beyond $102 per barrel on Friday. This represents the most elevated level since Sept. 16. Brent crude experienced an even more pronounced surge approaching 3% to reach $116 per barrel, a price point not observed since mid-March.

Brent crude oil price chart
CFDs on Brent crude oil one-day chart. Source: Cointelegraph/TradingView

Providing commentary, economist Robin Brooks highlighted that prices were climbing despite oil flows traveling through the Persian Gulf nearing pre-war levels for numerous countries and Saudi Arabia exceeding its pre-war average.

Since the start of the war, we've not seen this kind of decoupling between prices and flows

Brooks stated in his analysis published on the day, observing that markets were pricing in a "huge risk premium."

Persian Gulf oil-transit volumes
Persian Gulf oil-transit volumes (screenshot). Source: Robin Brooks on Substack.com

Bitcoin price technical analysis focuses on 50-day moving average

Offering insights on short-term BTC price movements, Keith Alan, cofounder of cryptocurrency trading platform Material Indicators, identified the possibility for additional tests of lower support zones ahead.

BTC/USD, he observed, had dropped beneath its 50-day simple moving average (SMA) positioned at $81,781, with buyers currently working to recapture it before the daily candle closes.

If they fail to do so by tonight's close, I'm looking for a support test in the $78k - $80k range

He communicated to X followers.

BTC/USD chart with 50-day moving average
BTC/USD one-day chart with 50 SMA. Source: Cointelegraph/TradingView

In earlier reports, Cointelegraph documented significant BTC price support situated between $80,000 and $81,500, given that this zone contains the combined cost basis for participants in the spot Bitcoin exchange-traded funds (ETFs).

← Voltar ao blog