Bitcoin Bulls Struggle to Regain $72,000 Despite US-Iran Ceasefire
Bitcoin briefly regained $72,000 on news of the ceasefire, but fading momentum, resistance and macro concerns have traders questioning the strength of the issue.
Bitcoin (BTC) hit fresh three-week highs for the Wall Street open on Wednesday as stocks rose on the US-Iran ceasefire deal.
Key Points:-
Bitcoin hit a new three-week high before paring its gains.
Iran's ceasefire relief is unlikely to last as traders urge bulls to hold higher.
More volatility is due after the US inflation report.
The price of BTC could not stay above $72,000
BTC/USD hit $72,865 on Bitstamp before capping the day's gains, charted from TradingView.
News of a ceasefire between the US, Israel and Iran that could last at least two weeks sent risk assets higher, with the S&P 500 up more than 2.5% at the open.
WTI crude oil fell to $91 a barrel as concerns over oil supply problems eased and traffic resumed off the Hormuz coast. This is despite attacks on Saudi oil pipelines.
“The S&P 500 is now set to open above 6,800, just 2.9% away from a new record high. The index added +$1.6 trillion today,” wrote trading resource Kobeisi Letter in X's latest market coverage.
The relief among Bitcoin market participants was palpable.
“I said earlier that the shooting stop would be a clear direction in the markets. It happened,” wrote crypto trader Michael van de Pop on X's response.
“Bitcoin breaks through the crucial $71K level and forms an upside structure. Oil is down and the river is open, which means there is a mean reversal play on Bitcoin.”
Van de Pop described the need to hold support at $69,500 as “crucial”.
“That general set of high lows, high highs, and a continuation of the upward trend and a possible fall with a new all-time high on the Nasdaq,” he added.
More inflation volatility on the horizon
Trader Diane Cryptotrades said that it should clear the $72,000 sticking point in recent weeks.
Related: Bitcoin RSI ‘Almost Absolutely' Reversing 2022 Bear Market: Analysis
“Another day testing the $72k level. Let's see if the bulls can push this time,” X told his followers.
“I'd like to see a clean break and hold more than that area. Preferably over 1-2 days at this point.”
Cointelegraph previously reported concerns among other traders about the overall strength of the BTC price.
The rest of the week will see key US inflation releases, which are set to reflect the initial impact of the Iran conflict and risk-asset volatility.
This article is prepared 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 transactions involve risk; Readers are encouraged to do independent research before making any decisions. Cointelegraph makes no warranty as to the accuracy or completeness of the information provided, including forward-looking statements, and shall not be liable for any loss or damage arising from reliance on such content.
