Bitcoin (BTC) showed strength as it traded above $67,000 on Monday after closing at its first weekly high in seven weeks. Meanwhile, oil prices rose as conflict in the Middle East fueled fears of a major supply shortage.
Key considerations:
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Bitcoin holds steady above $67,000 as oil prices reach new highs since 2022.
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The biggest oil supply shock in history is raising global inflation concerns.
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On the weekly chart, the upside inverted hammers point to a potential bottom for BTC.
A global oil supply shock is fueling inflation concerns
Oil futures rose to $119 in early Asian trading on Monday, data from TradingView showed, as the escalating conflict in the Middle East fueled fears of supply cuts.
This is the highest oil price since Russia invaded Ukraine in 2022.
The recent rise in oil prices comes as Iraq warned that production of nearly 3 million barrels per day could be cut in the Strait of Hormuz due to Iran’s threats against tankers.
related to: Bitcoin prepares to show new trend line as weekly close hits $60K target
Capital markets commentator Kobe’s Letter said the world is now experiencing “the biggest oil supply shock ever” and is losing about 20 million barrels of oil supply every day.
Despite the rise in oil prices, US President Donald Trump said it was a “small price” to pay for peace.
“The short-term oil prices that will fall quickly when the Iranian nuclear threat is removed is a very small price to pay for US and world security and peace.”
Meanwhile, a sharp rise in oil prices and an imminent supply shock have revived global inflation concerns, with markets seeing little chance of a rate cut in 2026.
Polymarket forecasters are pricing in about a 99% chance the Federal Reserve will leave rates unchanged at its March 18 meeting and only about a 27% chance of a 25-basis rate cut in 2026.
Unchanged rates tighten financial conditions, boost the dollar and pressure bitcoin, which often sees short-term volatility as investors shift capital to safe havens like gold.
Has the price of Bitcoin already dropped?
At the time of writing, Bitcoin traded around $67,000 with little sign of panic selling, suggesting that traders viewed this momentum as a specific energy shock rather than a broader risk event.
“Bitcoin’s rejection while the rest of the market is on fire is one of the strongest signs I’ve seen yet that the bottom may be inside,” analyst Brian Brookshire said in a note to X on Monday.
“If there was even a hint of foam in Bitcoin, it would panic and sell off 10% to the open futures.”
Despite the rejection of the $74,000 resistance level, the BTC/USD pair still produced “the first positive weekly candles in 7 weeks,” CoinBureau founder and CEO Nic said on Monday.
The price action also created a “reverse hammer” that could signal a potential reversal, Nick added.
A weekly inversion hammer candlestick is a bullish reversal pattern that appears at the end of a downtrend. It has a small body at the lower end, little or no pith, and an upper pith at least twice the size of the body. This suggests that buyers are challenging sellers and possibly reversing the trend.
Thus, Bitcoin could go higher if this pattern is confirmed by a strong tracking candle this week and more volume to break the upper resistance.
As Cointelegraph reported, oil price spikes immediately after conflicts tend to be short-lived, with Bitcoin outperforming in the long run.
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