- Bitcoin price and IBIT stock price are at risk of further downside in the near term.
- Bloomberg analysts predict that crude oil prices will soar to $140 soon.
- BTC has formed a bearish flag pattern, pointing to more downside over time.
Bitcoin price and BlackRock’s IBIT stock have stalled in the past few weeks as the Iran war evolves. BTC was trading at $66,000 on Tuesday, while the BlackRock Bitcoin ETF was stuck at $38. The two may be on the cusp of a strong bearish breakdown, as Bloomberg analysts predict crude oil price will trade at $140.
Bloomberg Predicts $140 Crude Oil Price as Gasoline Tops $5
Analysts at Bloomberg believe that the crude oil price could be on the verge of a strong bullish breakout, rising from the current $108 to $140 in the foreseeable future.
The analysts warned that Iran will seek to close the Strait of Hormuz for a longer period to boost oil prices. At the same time, the analysts believe that a US ground operation in Iran will push Houthis to intensify their attacks. Precisely, the group will want to disrupt oil flows from Saudi Arabia. The report says:
“By our calculations, that could push oil toward $140 per barrel, lift inflation, weaken global growth, and transfer income from consumers to oil producers.”
The report came on the same day that the average gasoline price in the United States jumped to $4.018 a gallon, the highest level since 2022. A continued surge in crude oil prices will push gasoline and diesel prices higher in the near term. Diesel has already soared to $5.81.
READ MORE: Coinbase Stock Price Is at Risk of Crashing to $100: Here’s Why
Soaring crude oil and gasoline prices will lead to a higher consumer inflation rate, with the OECD predicting that the headline Consumer Price Index (CPI) will rise to 4.2% by the end of the year.
Such a move will make it hard for the Federal Reserve to cut interest rates this year. Indeed, data show that the 10-year yield rose to 4.35% and the 2-year yield rose to 3.83%.
These developments are happening as demand for spot Bitcoin ETFs remains weak. The funds added $69 million in inflows on Monday, after shedding over $296 million the week before. IBIT ETF now manages over $51.9 billion in assets.
Bitcoin Price Technical Analysis
The weekly chart shows that the BTC price has crashed in the past few months. It has dropped from a high of $126,296 in October to the current $66,306.
The coin has moved below the 50% Fibonacci Retracement level at $71,000. It has formed two bearish flag patterns and is now in the second one. It has moved slightly below the lower side of the flag section.
Also, it is nearing a mini death cross, which occurs when the 50-week and 100-week Exponential Moving Averages (EMAs) cross.
Therefore, the most likely Bitcoin price prediction is bearish, with the initial target to watch at $60,400, about 8.90% below the current level. A drop below that level will point to more downside, potentially to the psychological level at $50,000.
Such a drop will lead to a lower IBIT stock price, which would drop to $28 from the current $38.
On the other hand, Bitcoin’s jumping above the key resistance level at $76,000 will invalidate the bearish outlook and point to more gains, potentially to the 38.2% retracement level at $85,000.
READ MORE: IREN Stock Drops Below Key Price as Short Interest Rises Amid Dilution Risks
