Bitcoin (BTC) saw a fresh drop below $81,000 after the Wall Street open on Friday as Brent crude oil hit new seven-month highs.
Important Points:
- Bitcoin briefly fell below $81,000 at the start of Friday’s US trading session as stocks moved lower and the US 10-year yield remained below 5%.
- Brent crude oil prices hit $116 a barrel for the first time since March 19 amid tensions in the Middle East.
- BTC price action focused on reclaiming its 50-day simple moving average of $81,781.
US stocks fall as oil rises, bond yields cool
Data from TradingView shows BTC/USD falling as low as $80,988 before recovering to around $81,600 at the time of writing.
BTC/USD Hourly Chart. Source: Cointelegraph/TradingView
As US stocks opened lower AI sector spending woes coincides with the rise in oil prices on the back of Tensions around the US-Iran war.
At the time of writing, the S&P 500 and the tech-heavy Nasdaq Composite Index were down 0.6% and 0.2%, respectively. The Dow Jones industrial average was down 1.4 percent.
As traders shied away from risk, the yield on the 10-year U.S. bond fell below 5%, hitting 4.939% on Thursday, its lowest since Sept. 23.
One-day chart of US 10-year bond yields. Source: Cointelegraph/TradingView
WTI crude oil prices rose above $102 a barrel on Friday on concerns that the US could renew military strikes on Iran around midterm elections. This is the highest level since September 16. Brent crude rose more than 3 percent to $116 a barrel, a level last seen in mid-March.
CFDs on one-day chart of Brent crude oil. Source: Cointelegraph/TradingView
Commenting, economist Robin Brooks noted that prices were rising even though oil flows from the Persian Gulf had reached pre-war levels for many nations and Saudi Arabia had surpassed its pre-war average.
“Since the beginning of the war, we have not seen such a gap between prices and flows,” he wrote In that day’s analysis, seeing markets add a “huge risk premium.”
Persian Gulf Oil Transit Volume (screenshot). Source: Robin Brooks ON substack.com
BTC price analysis tracks the 50-day trend line.
Commenting on the lower timeframe BTC price action, Keith Allen, cofounder of crypto trading platform Material Indicators, sees the possibility of a retest of lower support.
Related: Here’s what happened today in crypto.
BTC/USD, he noted, had fallen below its 50-day simple moving average (SMA) at $81,781, with bulls now trying to regain it by the daily close.
“If they fail to do so by tonight, I’m looking for a test of support in the $78k – $80k range,” he said. told X followers
BTC/USD 1-day chart with 50 SMA. Source: Cointelegraph/TradingView
first, Cointelegraph reported On substantial BTC price support between $80,000 and $81,500, as this area forms the overall cost base for investors in spot bitcoin exchange-traded funds (ETFs).
