The crypto market is at risk of a steep crash as the WTI crude oil price jumped and flipped Brent, and as the US published strong non-farm payrolls (NFP) data. Bitcoin price dropped to $66,300, while top altcoins like Solana and XRP remained in a bear market.
Crypto Market at Risk as Crude Oil Price Jumps
A major risk facing the crypto market is that the Iran war is escalating, with Donald Trump promising to take the country to the stone age. He has bombed Iranian bridges and promised to bomb its power infrastructure.
Iran retaliated by bombing Israeli targets and those of its neighboring countries, like Saudi Arabia and Kuwait. As a result, crude oil prices continued rising, with the West Texas Intermediate (WTI) benchmark moving to $112 and Brent moving to $110.
As a result, there is a likelihood that consumer inflation will continue rising this year, with the OECD predicting that the benchmark Consumer Price Index will jump to 4.2% this year.
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The Federal Reserve will likely not cut interest rates in such market conditions, which explains why US government bond yields have continued rising this week.
This trend continued after the US published strong non-farm payrolls (NFP) data, which showed that the economy created 178k jobs in March as the unemployment rate fell to 4.3%. In a statement, Bloomberg analysts wrote:
“We expect payrolls to pick up steam through June, reflecting increased leisure and hospitality hiring as the US hosts the World Cup, and a cyclical rebound in the freight sector. The massive supply shock since the start of the Iran war likely won’t show up in payrolls until the second half of the year.”
Third-party data shows that the crypto market is at risk, with the Crypto Fear and Greed Index remains in the fear zone, while the futures open interest continues falling.
Bitcoin Price Technical Analysis Points to a Crash
As we have predicted earlier, technicals suggest that Bitcoin price is on the cusp of a strong bearish breakdown, which will affect the broader crypto market.
The weekly chart shows that it has already moved below the 50% Fibonacci Retracement level. It is about to form a death cross, and is in the process of forming a bearish pennant pattern.
Therefore, there is a likelihood that it will plunge to the Ultimate Support level of the Murrey Math Lines tool at $75,000. Such a move will lead to risk-off sentiment in the crypto market and push more tokens lower.
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