Middle East boon erupted... Bitcoin collapses below $75,000

▲ Bitcoin (BTC), virtual assets, cryptocurrencies, fear sentiment, cryptocurrency decline/ChatGPT generated image

Despite a boon for risky assets in the form of progress in US-Iran peace talks, Bitcoin (BTC) has fallen below $75,000, showing a trend contrary to the stock market's new highs.

According to cryptocurrency media outlet Cointelegraph on May 27 (local time), Bitcoin fell below $75,000 at the opening of Wall Street on Wednesday. While expectations of a peace agreement between the US and Iran grew, leading US stocks to hit record highs, the cryptocurrency market failed to join the upward trend.

According to TradingView data, Bitcoin fell by up to 1.2% on the day, moving into a retesting zone for its weekly low. News that the US and Iran had prepared a memorandum of understanding to end the conflict boosted the stock market, while commodities and oil prices immediately fell. West Texas Intermediate (WTI) crude oil dropped to $87.77 per barrel on the day, its lowest level since April 22.

The agreement reportedly includes a 60-day negotiation period for a sustainable agreement and the reopening of the Strait of Hormuz, a major oil shipping route. Trading resource The Kobeissi Letter stated, "If a final agreement is reached within 60 days, it will be approved in the form of a binding UN Security Council resolution." Despite being a macro variable favorable to risky assets, Bitcoin moved contrary to US stocks, similar to recent weeks, showing a trend closer to falling oil prices.

The flow of market order books also increased short-term bearish pressure. Citing Coinglass data, the trading and analysis account CGT Trader analyzed that while upward liquidity is relatively widely dispersed, showing no clear upward liquidation targets, there is a large cluster of liquidations around $74,000 on the downside. He said, "While hunting for upward liquidity cannot be ruled out, personally, the likelihood of continued decline is still greater."

Other market participants were also not optimistic about Bitcoin's trend. Market commentator Exitpump described Bitcoin's price movement as "bearish" and suggested that the next downside target could be around $72,000. Material Indicators cited the possibility of a dead cross between the 21-day and 50-day simple moving averages as an additional burden. In contrast, analyst Eric Coleman interpreted the trend as retesting the top of an ascending triangle on the daily timeframe, stating that the trend is bullish as long as the price remains above horizontal and trendline support.

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