Bitcoin price retreated by over 3% on Tuesday as concerns about the war in Iran accelerated, leading to higher crude oil and natural gas prices. BTC dropped to $66,000, a day after it hit the crucial resistance level at $70,000. It has also formed a bearish pennant pattern, pointing to more downside.
Crude Oil Price Jumps Placing Major Risks Ahead
Bitcoin price retreated on Tuesday, mirroring the performance of other assets. For example, most altcoins dropped, with the market capitalization of all coins falling to $3.28 trillion.
Global stocks also continued falling, with the Dow Jones falling by 900 points. Similarly, the Nasdaq 100 and S&P 500 indices fell by 600 and 130 points, respectively. The same is happening in Europe, where the German DAX and FTSE 100 indices fell by over 1%.
Meanwhile, crude oil continued rising, with Brent rising to over $84 and the West Texas Intermediate (WTI) rising to $77. Natural gas prices continued soaring this week after Qatar shut down a key export terminal. Also, Iran has largely shut down the vital Strait of Hormuz.
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Therefore, there is a risk that the Federal Reserve will struggle to deliver interest rate cuts. Data on Polymarket shows that the odds of three rate cuts have dropped in the past two days.
The ongoing Bitcoin retreat is happening because of the fact that Bitcoin is no longer a safe-haven asset as analysts were expecting years ago. Indeed, BTC has always crashed whenever risks emerged, including the recent Trump’s tariffs.
Bitcoin price also dropped as futures open interest dropped to $24 billion from Monday’s $45 billion. Falling open interest is a sign that demand for Bitcoin is falling in the futures market.
Bitcoin Price Prediction: Technical Analysis
The daily chart shows that Bitcoin price has retreated in the past few months, moving from a record high of $126,300 in October last year to $66,200.
It has formed a bearish pennant pattern, which is made up of a vertical line and a symmetrical triangle pattern. The two lines of this triangle are nearing their confluence, which may lead to a strong bearish breakdown in the near term.
Bitcoin price has also remained below the Supertrend indicator and the Ichimoku cloud. Also, the Relative Strength Index (RSI) rally has stalled below the neutral point at 50.
Therefore, the most likely Bitcoin price prediction is bearish, with the next key target being at $60,000. A drop below that level will raise the possibility of it dropping to $50,000 as analysts at Standard Chartered predicted.
On the positive side, the Bitcoin price may rebound in the near term if there are signs that the war in Iran is ending.
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