Bitcoin and Risk Assets Halt Their Surge With BTC Support at Risk

Bitcoin (BTC) stayed glued to $78,000 on Friday with markets “awaiting clarity” from the US-Iran war.

Key points:

• Bitcoin stalls in its bid to recapture $80,000, as US stocks tread water.
• Strong earnings are needed to sustain the equities push, says analysis.
• BTC price support is at risk of giving way next.

Bitcoin joins risk assets “chopping sideways”

Data from TradingView tracked flat BTC price action into the week’s last Wall Street trading session. 

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

Amid a lack of fresh geopolitical cues, risk-asset catalysts presented a mixed picture, leading to sideways movements for US stocks. WTI crude oil, after nearing a rematch with the $100 mark, cooled to $95.

CFDs on WTI crude oil one-hour chart. Source: Cointelegraph/TradingView

“$BTC & Stocks started the week off strong as metals have sold off. But as $OIL has been starting to move again the past few days, risk assets have stalled and are now chopping sideways,” trader Daan Crypto Trades responded in a post on X. 

“Market is eagerly awaiting clarity from the conflict in the middle east. The longer it drags on and oil keeps moving higher, the more pressure will be put on these.”

Macro asset price comparison. Source: Daan Crypto Trades/X

The day prior, trading resource Mosaic Asset Company said that positive earnings figures would be essential to sustain continued upside for stocks, with the S&P 500 already hitting new record highs.

“With the first quarter reporting season about to pick up, it will be crucial to monitor forward earnings estimates for any changes in trend since the start of the year,” it wrote in its latest analysis.

S&P 500 one-hour chart. Source: Cointelegraph/TradingView

Analyst “surprised” that BTC price support holding

Focusing on BTC/USD, trading resource Material Indicators hinted at early signs of a deeper retracement next.

Related: Bitcoin price set for best gains since Q4 2024 with $77.5K monthly close

“Bid liquidity at $76.5k already rugged, as predicted yesterday, and LTF order flow is trending down,” it wrote on X, referring to data from one of its proprietary trading tools.

Material Indicators added that it was “surprised” that bid liquidity below spot price had not been pulled.

BTC/USDT order-book liquidity data with whale orders. Source: Material Indicators/X

Trading account JDK Analysis referenced a “news-driven pump” as further evidence that the low-time frame rally was overextended.

“The profile shows $BTC at the upper value extreme of the past two days,” an X thread read, analyzing exchange order-book data.

BTC/USDT order-book data (Bybit). Source: JDK Analysis/X

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