Bitcoin stocks divergence returns as BTC dips to $66K while oil drops under $78
Bitcoin (BTC) dropped back to $66,000 after Tuesday’s Wall Street open as stocks locked in fresh gains.
Key points:
- Bitcoin cools its rebound, even as stock continue higher on US-Iran peace plans.
- Oil prices hit their lowest levels in three months, but crypto struggles to leverage the tailwinds.
- BTC price takes still see $70,000 as the limit for the current push higher.
BTC price dips with oil as stocks head out in front
Data from TradingView showed BTC price action coming off its highest levels in nearly two weeks.
BTC/USD one-hour chart. Source: Cointelegraph/
Hopes that a US-Iran peace deal would go ahead kept equities bullish, with the S&P 500 adding over 1.5% on the day, while US WTI crude oil hit three-month lows.
“News of an peace deal between the U.S. and Iran has made headlines frequently in the past. But this time, both sides along with other parties involved with negotiations are confirming the deal,” trading resource Mosaic Asset Company wrote in the latest edition of its regular newsletter, The Market Mosaic.
“That’s leading to a spillover effect in the stock market, where oil prices and longer-dated bond yields are both pulling back. A negative correlation between stocks and oil prices means the drop in energy prices is a tailwind for equities.”
S&P 500 vs. WTI crude oil one-hour chart. Source: Cointelegraph/TradingView
Bitcoin nonetheless brought back its own divergence from other risk assets, and traders avoided bets on major BTC price upside.
“$BTC Has moved up further back into its range,” Daan Crypto Trades wrote in his latest analysis on X.
“I would not be surprised if we hang around this big area for a few more weeks at least. Especially with Summer coming up and lower liquidity/volatility.”
BTC/USDT perpetual contract one-day chart. Source: Daan Crypto Trades/X
Trader Roman joined those putting the area around $70,000 as a likely local top target.
“Still eyeing the 70k level for our bounce to be completed.,” he told X followers.
“Hourly TFs look good to continue a bit higher. There aren’t any ‘issues’ that I see yet to stop this bounce.”
Bitcoin trader calls "classic market psyop"
As Cointelegraph reported, other market analysis has cast doubt over the strength of $60,000 as long-term support, arguing that the bear market is too young to be over yet.
Related: Bitcoin analysis warns over BTC price rejection as $67K approaches
Countering this, trader Killa suggested that both market makers and trading algorithms had lured traders into betting on new lows that would never come.
“Just another classic market psyop,” they summarized alongside a chart of order-book liquidity data.
BTC/USD order-book liquidity data. Source: Killa/X
Data from CoinGlass put 24-hour crypto short liquidations at $230 million at the time of writing.
Cryptocurrency liquidation history (screenshot). Source: CoinGlass
Commenting, trader Lennaert Snyder said that price was headed into a “high-time frame sell zone,” targeting $68,000 for Tuesday.
“The liquidity sub 63.6K looks too juicy to not mitigate, but for the quality short I'd prefer that push to the upside first,” he wrote on X.
BTC/USDT four-hour chart. Source: Lennaert Snyder/X
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
The AI boom may follow the path of the 19th-century railway bubble, and builders may not be the ultimate winners
Goldman Sachs analyst Bobby Molavi compared the current situation to the 19th-century British railway mania: 500 companies spent more than the nation's annual income building 8,000 miles of railway, with most early investors losing out, while the real beneficiaries were the later "passengers." He pointed out that the current AI craze is driven by both debt and momentum, and that the S&P 500’s forward P/E ratio of 18x is only "a bit cheaper." Whether the builders can retain value is uncertain, and history does not offer an optimistic answer.
If Anthropic's IPO goes smoothly and the stock price rises next week, then everything remains the same for AI. Otherwise, some companies will go bankrupt.
The shrinking valuations of two major giants have triggered a chain reaction—investors are adopting more conservative revenue multiples for AI startups and are directly halting high-valuation financing for companies with zero revenue. Multiple venture capital firms have advised their portfolio companies to lower valuation expectations and to quickly build up cash reserves. Market participants warn that the outcome of Anthropic’s IPO will be a barometer for the industry: if successful, the boom will continue; if it fails, some companies may face elimination.
After the Brazilian election, political discount deepens; Morgan Stanley remains bullish on Petrobras (PBR.US), focusing on fuel pricing and dividends
Morgan Stanley still maintains its most optimistic "Overweight" rating, but has lowered its year-end 2027 target price from $31 to $25.
Corning (GLW.US) receives initial "Buy" rating from Jefferies! AI factories driving a fiber optic rush, with a potential global supply gap of up to 30%
For Corning, the recent profit growth mainly comes from the expansion of AI clusters. As the number of optical links crossing cabinets and campuses increases, customers need to deploy more optical fibers within limited conduit and cabinet space, thus driving demand for high-density optical cables and connection systems.
Crypto prices
More
