Key takeaways

Bitcoin has dropped below $74,000 after pulling back from a monthly high earlier this week. The cryptocurrency surged from $70K at the start of the week to hit $76K on Tuesday, before easing to its current level. 

The US Navy has confirmed a full blockade of Iranian ports, amplifying concerns over oil supply disruptions and pushing prices higher from three-week lows. However, President Trump has suggested that the conflict may be nearing an end, which has tempered further upside in oil prices and kept hopes of a de-escalation alive. 

In addition to that, treasury yields have been on a downward trend, supported by softer-than-expected PPI data for March, which rose 0.5% month-on-month, below the 1.2% forecast. This easing of inflation concerns benefits Bitcoin, as lower yields signal improving liquidity and reduce the opportunity cost of holding non-yielding assets like crypto.

The US stock market has also been resilient, with the Nasdaq posting its tenth consecutive winning session, gaining nearly 10% in April. Crypto markets have mirrored this strength, with Bitcoin up approximately 8.5% so far this month. 

These parallel moves suggest that Bitcoin is increasingly trading as a macro-sensitive asset, responding to broader market sentiment rather than purely crypto-specific factors.

Despite the current market conditions, institutional demand continues to support Bitcoin’s price action. Spot Bitcoin ETFs saw $411 million in net inflows on Tuesday, despite a $291 million outflow the previous day. This brings total net inflows for April to $741.9 million.

The growing institutional acceptance of Bitcoin is further highlighted by Goldman Sachs’ filing with the SEC for a Bitcoin premium income ETF, signaling a deeper commitment to crypto from traditional finance. 

The BTC/USD 4-hour chart is bearish and efficient as Bitcoin is down by more than 1% in the last 24 hours. 

Currently, Bitcoin is trading within a rising channel that has been in place since early February. BTC is testing a key resistance level around $76K, which coincides with both the March high and the 23.6% Fibonacci retracement of the October high near $126K. 

If the bulls regain control and Bitcoin embarks on a sustained break above $76K, it could target $80K, followed by $85K and the 200-day SMA at $88K.

On the downside, Bitcoin has initial support near $71K, with stronger support at $69.6K, the 50-day SMA. A move below $65K would signal a lower low, indicating a shift in market sentiment.

The post Bitcoin dips below $74K amid Middle East tensions and mixed market signals appeared first on CoinJournal.

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