Bitcoin declined around 1.7% on Monday after reaching a local high of $78,750 following the weekly close. After Wall Street opened, BTC returned below $77,000 as the cryptocurrency market failed to sustain the optimism that initially lifted US stocks on expectations of a diplomatic resolution to the US-Iran conflict.
Bitcoin’s weakness came as oil prices fell sharply. West Texas Intermediate crude dropped more than 7% during the session, reaching $95.15 per barrel, its lowest level since October 15. Brent crude was down about 9% near $103.30. The decline followed comments from US Secretary of State Marco Rubio that President Donald Trump would prefer to end the conflict diplomatically, although no decision had been made.
US stocks opened higher after the comments, but gains in the S&P 500 and Nasdaq Composite later moderated ahead of third-quarter earnings reports from Apple and Palantir. The Nasdaq was approximately 0.2% higher at the time of reporting. Recent earnings results and fourth-quarter projections had already increased volatility across risk assets amid renewed concerns about artificial-intelligence spending.
Gold performed more strongly than Bitcoin, maintaining gains of about 2% and moving back above $3,950 per ounce. The metal had fallen to a 13-month low of $3,891 on Friday. Economist Robin Brooks said falling oil prices could support further gains in gold, while linking the metal’s recent drop below $4,000 to the earlier rise in crude prices.
Technical analysts highlighted the risk of a deeper Bitcoin pullback. Rekt Capital said BTC/USD had failed to break horizontal resistance near $78,500 and warned that the unsuccessful retest could open the way for a move below approximately $76,000.
QCP Capital identified the $76,000-$76,600 area as an important support band, noting that it had prompted upward reversals four times since September. The firm said a daily close above $79,500 could restore a previously lost range, while a break below support would bring the 50-week average near $75,700 into view. The 200-day average was identified near $73,100.
Sources: Cointelegraph.