Bitcoin (BTC) neared $78,000 on Saturday after geopolitical headwinds wiped out most of its gains in May.
key points:
- Bitcoin has fallen below $78,000 for the first time since the beginning of May.
- The oil-supply crisis combined with ongoing concerns on US bond markets creates headwinds for risk assets.
- Due to the weakness of support, traders are looking at $75,000 and below, while optimists are seeing a “bearish trap” forming.
Multiple headwinds are “coming together” for crypto, risk assets.
Data from TradingView confirmed a new low of $77,614 that day – the lowest since May 1.
BTC/USD one hour chart. Source: Cointelegraph/trading view
negative pressure is arising Concern over US government bonds As this continued, the US-Iran war also remained at the forefront of traders’ minds.
Iran appears to be moving forward with a toll system for transit through the Strait of Hormuz – the epicenter of the global oil-supply shortage – while keeping American traffic out.
As informed According to others, including trading resource The Kobeshi Letter, Hormuz will reportedly “remain closed to operators of Project Freedom.”
On Friday, analysis from Mosaic Asset Company highlighted the problems the current geopolitical and macroeconomic environment poses for risk assets.
“The likelihood of another inflation wave with a rise in price levels in mid-2022 is increasing,” it wrote in its latest. mosaic chart alert blog post.
“Disrupted supply chains from last year’s trade war, the impact of the war on energy markets and stimulus through a large federal budget deficit are coming together at the same time.”
CFD on one hour chart of US WTI crude oil. Source: Cointelegraph/TradingView
WTI crude oil ended the week trading above $100 a barrel.
Bitcoin price action teases “bear trap”
Among Bitcoin traders, there were ongoing mixed emotions Regarding bearish strength below $80,000.
Connected: Bitcoin price history shows 77% chance of new all-time high within a year
“Over the past few days, the price has been falling a bit, while the open interest has increased. But things get interesting if we combine this with funding rates, which have turned negative,” X Trading Account Cryptic Trades written on x.
“This tells us that the bears are doubling down at the moment and betting on a breakdown. It also shows that even though the market structure is intact, the bears are shorting as if the breakdown has already happened. This is usually how bear-traps form.”
BTC/USDT chart with open interest, funding rate data. Source: CrypticTrades/X
For analyst Eric Coleman, the target for the new local minimum is around $75,000.
“BTC moved lower after breakdown retest of ascending triangle,” he said Abbreviation With charts showing relevant support/resistance flip levels.
BTC/USDT four-hour chart. Source: Eric Coleman/X
Examining exchange order-book liquidity, Dan Crypto Trades highlighted $71,000 as the nearest area of interest below the price.
“The longer prices remain compressed around this $80K area, the more liquidity will increase on both sides, which should result in more aggressive moves at some point,” he said. told X followers.
BTC/USDT liquidation heatmap. Source: Dan Crypto Trades/X
