Following the Wall Street opening bell on Friday, Bitcoin (BTC) experienced a sudden slip under the $81,000 threshold concurrent with Brent crude oil setting new seven-month highs.
Key points:
- At the onset of the US trading session on Friday, Bitcoin briefly dipped below $81,000 while equities drifted downward and the 10-year US Treasury yield held under 5%.
- Amid escalating tensions in the Middle East, Brent crude oil touched $116 per barrel for the first time since March 19.
- Price movement for BTC centered on winning back its 50-day simple moving average sitting at $81,781.
US stocks slip, bond yields cool as oil surges
Figures provided by TradingView recorded the BTC/USD pair descending to $80,988 prior to mounting a recovery toward approximately $81,600 as of this writing.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
United States equities opened on a downward trajectory as anxieties regarding artificial intelligence sector spending coincided with escalating petroleum costs driven by friction surrounding the US-Iran conflict.
At the time of publication, the S&P 500 and the technology-focused Nasdaq Composite Index showed declines of 0.6% and 0.2% respectively, while the Dow Jones Industrial Average dropped by 1.4%.
As market participants adopted risk-averse postures, the 10-year US bond yield remained below 5%, having registered 4.939% on Thursday, marking its lowest position since September 23.
US 10-year bond yield one-day chart. Source: Cointelegraph/TradingView
Fears that Washington might initiate fresh military strikes against Iran close to the midterm elections pushed WTI crude oil above $102 per barrel on Friday, reaching its peak since September 16. Simultaneously, Brent crude experienced a more pronounced surge of nearly 3%, hitting $116 per barrel—a mark not observed since mid-March.
CFDs on Brent crude oil one-day chart. Source: Cointelegraph/TradingView
In commentary on the matter, economist Robin Brooks pointed out that valuations were climbing despite petroleum shipments through the Persian Gulf nearing pre-conflict volumes for multiple countries, with Saudi Arabia even outstripping its pre-conflict average.
He noted in daily commentary that such a separation between pricing and supply flows has not been observed since hostilities began, suggesting the markets are pricing in an immense risk premium.
Persian Gulf oil-transit volumes (screenshot). Source: Robin Brooks on Substack.com
BTC price analysis eyes 50-day trend line
Addressing short-term Bitcoin price dynamics, Keith Alan, co-founder of the digital asset trading resource Material Indicators, suggested that further tests of lower support zones remain a possibility.
Related: Here’s what happened in crypto today
He observed that the BTC/USD rate slipped under its 50-day simple moving average pegged at $81,781, with bullish traders currently striving to recapture the level prior to the daily close.
He communicated to his X audience that if they fail to accomplish this by tonight’s session close, he anticipates a test of support within the $78,000 to $80,000 corridor.
BTC/USD one-day chart with 50 SMA. Source: Cointelegraph/TradingView
Earlier, Cointelegraph reported on substantial Bitcoin price support positioned between $80,000 and $81,500, given that this zone encompasses the collective cost basis for participants holding spot Bitcoin exchange-traded funds.
Originally published at https://cointelegraph.com/markets/bitcoin-seeks-support-above-81k-as-brent-crude-oil-hits-highest-level-since-march?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound.
