- Bitcoin price has soared to its highest point since February this year.
- Crude oil has soared as the Strait of Hormuz remains closed.
- The coin may still continue rising in the near term as ETF inflows continue rising.
Bitcoin price has stalled at an important resistance level, and the recent rally may be about to end as crude oil surges. BTC was trading at $77,800 on Friday morning, a few points below this week’s high of $79,400.
Bitcoin Price at Risk as Crude Oil Jumps
BTC coin may be at risk of a reversal primarily due to rising crude oil prices, which signal a higher inflation rate in the US and other countries.
Brent, the global benchmark, jumped to $106, while the West Texas Intermediate (WTI l) rose to $96. The two have increased by double digits from their lowest levels this year.
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As a result, there is a risk that inflation will continue rising in the near term. A recent report showed that the US consumer inflation rose to 3.3% in March from 2.4% in the previous month.
Worse, there is a risk that crude oil prices will continue to rise in the coming days or weeks, as the Strait of Hormuz remains fully closed. The US has continued to take Iranian ships, reducing the amount of oil going to the market.
Another risk is that President Donald Trump has no good way to end the war, with most analysts predicting that he might launch another attack against Iran as soon as this weekend.
Such a move would prompt Iranian retaliation, targeting energy infrastructure in the Gulf region. For example, the country may decide to deploy the Houthis to attack and close the Strait of Hormuz.
Higher crude oil prices mean the Federal Reserve will find it difficult to cut interest rates this year, even as economic weakness persists.
On the positive side, data shows that BTC ETF inflows continued rising this week. These funds have added over $1.8 billion this month, well above the $1.3 billion they added last month.
BTC Price Prediction: Technical Analysis
The Bitcoin price has crawled back over the past three months. It has moved from a low of $60,000 in February to $77,800 today.
BTC has moved above the important resistance level at $76,410, its highest point in March this year.
It has now jumped above the 50-day and 100-day Exponential Moving Averages (EMA). Also, it jumped above the upper side of the ascending triangle pattern.
It has also moved above the Major S/R pivot point of the Murrey Math Lines tool. Therefore, the coin will likely continue rising as bulls target the key resistance level at $87,500. This price is along the Strong Pivot Reverse level of the Murrey Math Lines tool.
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