TLDR

  • BTC declined 3.1% to approximately $70,182 during Friday’s Asian session
  • The cryptocurrency reached a one-month peak of $74,000 on Thursday before pulling back
  • CryptoQuant’s Bull Score Index registers at only 10 out of 100, indicating bearish conditions
  • Technical rejection at $74,000 has analysts focusing on $60,000 as critical support
  • American investor buying activity has increased, though macroeconomic concerns persist

Bitcoin experienced a significant retreat on Friday following a brief rally to $74,000 the previous day, settling around $70,182 in Asian market hours.

Bitcoin (BTC) Price
Bitcoin (BTC) Price

The approximately 3.1% decline followed Bitcoin’s achievement of a one-month peak on Coinbase Thursday, where it momentarily reached the 50-day exponential moving average before encountering resistance from sellers.

The weekly performance still shows Bitcoin posting a 7% gain despite the recent pullback.

Global conflict escalated market pressures. Military actions by the US and Israel against Iran prompted counterattacks involving missiles and drones, with hostilities now in their seventh day.

Concerns about oil supply disruption through the Strait of Hormuz, which facilitates roughly 20% of worldwide oil transport, intensified due to the conflict. Crude oil values surged over 16% throughout the week.

Elevating oil prices have amplified inflation worries, subsequently diminishing expectations for Federal Reserve rate reductions. This dynamic strengthened the US dollar while creating headwinds for risk-sensitive assets like Bitcoin.

Bear Market Signals Remain

CryptoQuant, an on-chain analytics platform, indicated Thursday that Bitcoin continues to operate within bear market parameters, regardless of the temporary upward movement.

Their Bull Score Index, which aggregates fundamental and technical measurements, registers at merely 10 out of 100. The firm characterized the recent upward movement as “likely just a relief rally, not the start of a new bull phase.”

Source: CryptoQuant

Nick Ruck, director at LVRG Research, explained that the rally stemmed from renewed appetite for risk assets and ETF capital inflows, though it “quickly faced headwinds” as macroeconomic uncertainty and diminishing momentum drove prices lower.

Technical Picture Points Lower

Technical analysis reveals Bitcoin completed what market participants identify as a “failed auction” at the $74,000 resistance threshold. Price action penetrated above this level temporarily before reversing direction sharply and settling back below.

This threshold coincided with the volume-weighted average price (VWAP), establishing a dual resistance configuration that buyers could overcome.

Following the loss of the value area high, market analysts indicate a trajectory toward $60,000 — the prior weekly low — becomes more probable should selling momentum persist.

SwissBlock analysts stated Friday that “momentum is flashing a critical shift,” observing that Bitcoin is “exiting peak negative momentum.”

Regarding demand dynamics, CryptoQuant observed a positive Coinbase Premium, indicating renewed purchasing activity from American investors. Bitcoin spot demand from US market participants transitioned from contraction to expansion.

Selling activity from traders and long-term holders has diminished following unrealized losses reaching depths last observed in July 2022.

Bitwise Asset Management revealed a $233,000 contribution to Bitcoin open-source developers, marking its second annual donation linked to performance of its spot Bitcoin ETF.

Bitcoin was changing hands near $70,182 during early Friday trading.