Bitcoin (BTC) dropped back to $66,000 after Tuesday’s Wall Street open as stocks locked in fresh gains.
Key points:
- Bitcoin cools its rebound, even as stock continue higher on US-Iran peace plans.
- Oil prices hit their lowest levels in three months, but crypto struggles to leverage the tailwinds.
- BTC price takes still see $70,000 as the limit for the current push higher.
BTC price dips with oil as stocks head out in front
Data from TradingView showed BTC price action coming off its highest levels in nearly two weeks.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
Hopes that a US-Iran peace deal would go ahead kept equities bullish, with the S&P 500 adding over 1.5% on the day, while US WTI crude oil hit three-month lows.
“News of an peace deal between the U.S. and Iran has made headlines frequently in the past. But this time, both sides along with other parties involved with negotiations are confirming the deal,” trading resource Mosaic Asset Company wrote in the latest edition of its regular newsletter, The Market Mosaic.
“That’s leading to a spillover effect in the stock market, where oil prices and longer-dated bond yields are both pulling back. A negative correlation between stocks and oil prices means the drop in energy prices is a tailwind for equities.”
S&P 500 vs. WTI crude oil one-hour chart. Source: Cointelegraph/TradingView
Bitcoin nonetheless brought back its own divergence from other risk assets, and traders avoided bets on major BTC price upside.
“$BTC Has moved up further back into its range,” Daan Crypto Trades wrote in his latest analysis on X.
“I would not be surprised if we hang around this big area for a few more weeks at least. Especially with Summer coming up and lower liquidity/volatility.”
BTC/USDT perpetual contract one-day chart. Source: Daan Crypto Trades/X
Trader Roman joined those putting the area around $70,000 as a likely local top target.
“Still eyeing the 70k level for our bounce to be completed.,” he told X followers.
“Hourly TFs look good to continue a bit higher. There aren’t any ‘issues’ that I see yet to stop this bounce.”
Bitcoin trader calls “classic market psyop”
As Cointelegraph reported, other market analysis has cast doubt over the strength of $60,000 as long-term support, arguing that the bear market is too young to be over yet.
Related: Bitcoin analysis warns over BTC price rejection as $67K approaches
Countering this, trader Killa suggested that both market makers and trading algorithms had lured traders into betting on new lows that would never come.
“Just another classic market psyop,” they summarized alongside a chart of order-book liquidity data.
BTC/USD order-book liquidity data. Source: Killa/X
Data from CoinGlass put 24-hour crypto short liquidations at $230 million at the time of writing.
Cryptocurrency liquidation history (screenshot). Source: CoinGlass
Commenting, trader Lennaert Snyder said that price was headed into a “high-time frame sell zone,” targeting $68,000 for Tuesday.
“The liquidity sub 63.6K looks too juicy to not mitigate, but for the quality short I’d prefer that push to the upside first,” he wrote on X.
BTC/USDT four-hour chart. Source: Lennaert Snyder/X