Oil Ensures Bitcoin Fails to Reclaim $70,000 Yet Again

Bitcoin bulls gave up their latest mission to reclaim $70,000 as Iran escalation sparked oil supply fears that gripped stocks and gold.

Bitcoin (BTC) erased its latest trip to $70,000 on Tuesday as Middle East tensions sparked a global asset sell-off.

Key points:

• Bitcoin and major asset classes all fall after the closure of the Strait of Hormuz.

• Oil sees upside volatility while even gold fails to offer protection from uncertainty.

• BTC price action again fails to hold $70,000 or nearby trend lines.

Oil keeps BTC price firmly below $70,000

Data from TradingView tracked 3.2% BTC price losses on the day as $66,000 came back into focus.

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

Bitcoin joined stock markets worldwide in considerable weakness amid concerns over oil supplies and inflation, thanks to the closure of the Strait of Hormuz.

The S&P 500 and Nasdaq Composite Index were both down by about 2% after the Wall Street open, while gold also fell, targeting $5,000 support.

CFDs on WTI oil one-day chart. Source: Cointelegraph/TradingView

“The market is beginning to price-in a longer war,” trading resource The Kobeissi Letter wrote in a response on X.

BTC/USD again failed to flip key trend lines to support, something that led Keith Alan, cofounder of trading resource Material Indicators, to conclude that bears remained in control.

“So far $BTC bulls have failed to muster any momentum,” he told X followers.

BTC/USD one-week chart. Source: Keith Alan/X

Others were hopeful on shorter time frames, noting Bitcoin’s comparatively stable response to the ongoing geopolitical crisis.

“Not doing the worst since the escalation in the middle east. Actually outperforming stocks & precious metals for a change,” trader Daan Crypto Trades commented on the day. 

Macro asset performance comparison. Source: Daan Crypto Trades/X

Gold weakens amid hopes of Bitcoin influx

Cointelegraph reported earlier on how rising oil prices tend to impact BTC price action.

Related: ‘This is not World War III:’ Five things to know in Bitcoin this week

Nik Bhatia, founder of global macro research company The Bitcoin Layer, described gold as “absolutely smashed.”

“Gold looks very toppy at worst and technically damaged at best,” he wrote on X while acknowledging year-to-date gains of 16%.

CFDs on gold one-day chart. Source: Nik Bhatia/X

Last week, crypto trader, analyst and entrepreneur Michaël van de Poppe said he hoped that a potential capital rotation from gold to BTC was already getting underway.

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