Bitcoin briefly reclaimed $72,000 on ceasefire news, but fading momentum, resistance and macro risks leave traders questioning the strength of the breakout.
Bitcoin (BTC) briefly hit new three-week highs into Wednesday’s Wall Street open as stocks surged on a US-Iran ceasefire.
Key points:
-
Bitcoin hits new three-week highs before round-tripping its gains.
-
Iran ceasefire relief fails to last as traders demand that bulls reclaim higher levels.
-
More volatility is due after US inflation reports.
BTC price fails to stay above $72,000
Data from TradingView captured BTC/USD reaching $72,865 on Bitstamp before cooling the day’s gains.
BTC/USD one-hour chart. Source: Cointelegraph/TradingViewNews of a minimum two-week ceasefire between the US, Israel and Iran sent risk assets higher in an instant, with the S&P 500 up by more than 2.5% at the open.
WTI crude oil declined to as low as $91 per barrel as oil-supply crisis fears eased and traffic began to resume through the Strait of Hormuz. This came despite reports of an attack on a Saudi oil pipeline.
CFDs on WTI crude oil one-hour chart. Source: Cointelegraph/TradingView“The S&P 500 is now set to open above 6,800, trading just 2.9% away from a new record high. The index has added +$1.6 TRILLION today,” trading resource The Kobeissi Letter wrote in its latest market coverage on X.
S&P 500 one-hour chart. Source: Cointelegraph/TradingViewAmong Bitcoin market participants, the relief was palpable.
“I mentioned earlier that a ceasefire would be a clear direction on the markets. It happened,” crypto trader Michaël Van de Poppe wrote in an X response.
BTC/USDT one-day chart. Source: Michaël Van de PoppeVan de Poppe described the need to hold support at $69,500 as “crucial.”
“That would strengthen the entire theory of a higher lows, higher highs and continues the momentum upwards and is likely going to fall alongside a new all-time high on the Nasdaq,” he added.
More inflation volatility on the horizon
Trader Daan Crypto Trades said that $72,000, a sticking point in recent weeks, needed to be cleared.
Related: Bitcoin RSI ‘nearly perfectly’ copying end of 2022 bear market: Analysis
“Another day another test of the $72K level. Let’s see if the bulls can push through this time around,” he told X followers.
BTC/USDT perpetual contract eight-hour chart. Source: Daan Crypto Trades/XEarlier, Cointelegraph reported on other traders’ concerns about overall BTC price strength, which argued that Bitcoin bulls “still have a lot of work to do.”
The remainder of the week will see key US inflation releases, these set to show the initial impact of the Iran conflict and spark characteristic risk-asset volatility.
This article is produced in accordance with Cointelegraph’s Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and trades carry risk; readers are encouraged to conduct independent research before making any decisions. Cointelegraph makes no guarantees regarding the accuracy or completeness of the information presented, including forward-looking statements, and will not be liable for any loss or damage arising from reliance on this content.
Source: https://cointelegraph.com/news/bitcoin-fades-three-week-highs-btc-price-shrugs-off-iran-war-ceasefire?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
