Bitcoin 'Holds Firm' Even as Oil Prices Break $100...Trump-Xi Meeting a Watershed Moment

▲ Bitcoin, Oil Prices ©

Bitcoin (BTC) is demonstrating robust support, holding the $80,000 level even amidst a complex macroeconomic environment marked by surging oil prices due to geopolitical tensions and inflation concerns.

According to investment media FXStreet on May 11 (local time), Bitcoin (BTC) surged to $82,500 over the weekend but is currently taking a breather around $80,500. Despite the energy market's volatility, with West Texas Intermediate (WTI) crude prices temporarily breaking $100 per barrel amidst renewed tensions between the US and Iran, the virtual asset market appears to maintain a relatively stable trend, supported by institutional demand.

Key variables set to determine the market's direction this week include the release of the US Consumer Price Index (CPI) and the summit between President Trump and President Xi Jinping. The April CPI is expected to rise by 3.4% year-on-year, a slight increase from the previous month's 3.3%. Investors are particularly watching whether China's role in reopening the Strait of Hormuz will be highlighted at this summit, potentially easing energy price pressures.

Despite the unstable macro situation, institutional investors' love for virtual assets remains strong. According to SoSoValue data, Bitcoin spot ETFs recorded a net inflow of $622.7 million last week, marking six consecutive weeks of net inflows. This is the longest inflow streak since July last year, suggesting that expectations for regulatory improvements, such as the CLARITY Act, a US cryptocurrency market structure bill being discussed in the US Senate, are driving continuous institutional buying.

From a technical analysis perspective, BTC is moving within an ascending channel formed since early February. The current price has broken above a multi-month downtrend line and is now testing the 200-day Simple Moving Average (SMA) and the channel top at $82,500. If buying pressure pushes the price above and stabilizes at $82,500, the next upward targets are $85,000, followed by $95,000.

Conversely, the initial downside support is formed at $80,000. If this support breaks, a correction could extend to the midpoint of the ascending channel at $75,000 and the $74,000 level where the 50-day SMA is located. Experts advise caution, noting that market volatility could increase if the CPI figures, released while the Strait of Hormuz blockade persists, turn out higher than expected.

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