Bitcoin retreated to approximately $66,000 following the Tuesday Wall Street open, despite a rally in traditional stocks. The divergence occurred as markets reacted to potential U.S.-Iran peace talks, which buoyed equities and pressured oil prices. Analysts noted Bitcoin struggled to capitalize on these broader market tailwinds, with several traders identifying the $70,000 level as a probable near-term resistance point for the current price rebound.
Bitcoin’s price cooled to around $66,000 after stocks opened higher on Tuesday. The S&P 500 gained over 1.5% as reports of progress in U.S.-Iran peace negotiations provided a market tailwind.
This environment saw U.S. WTI crude oil hit its lowest price in three months. Trading resource Mosaic Asset Company wrote in its newsletter that “A negative correlation between stocks and oil prices means the drop in energy prices is a tailwind for equities.”
Bitcoin failed to leverage this momentum, resuming its recent divergence from other risk assets. Trader Daan Crypto Trades suggested the asset could remain range-bound, noting on X “I would not be surprised if we hang around this big area for a few more weeks.”
Several analysts viewed $70,000 as a likely ceiling. Trader Roman told his followers he was “Still eyeing the 70k level for our bounce to be completed.” Others debated the strength of underlying support levels.
Countering bearish narratives, trader Killa characterized recent market action as a “classic market psyop” designed to trap traders. Short-term crypto liquidations totaled approximately $230 million, according to data from CoinGlass.
