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Bitcoin pulls out of Iran as Wall Street pulls back $70,000
Cryptocurrency

Bitcoin pulls out of Iran as Wall Street pulls back $70,000

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Bitcoin (BTC) rose to $70,000 after the open on Wall Street on Monday as crypto markets split from US stocks.

Main points:

  • Bitcoin reacts to positive US manufacturing data as bulls manage to overcome geopolitical tensions.

  • BTC price action sees shares fight macro uncertainty to regain $70,000.

  • Traders are very skeptical that the market will start a real recovery.

Despite the events in Iran, the price of BTC suddenly hits $70,000

Data from TradingView confirmed that the daily increase in BTC price exceeded 5% at the start of the US trading session.

BTC/USD hourly chart. Source: Cointelegraph/TradingView

The fallout from the ongoing Middle East conflict appears to have had no effect on Bitcoin bulls, as BTC/USD hit $69,788 on Bitstamp, its highest level since February 25th.

“No retest levels, just straight up $BTC and $ETH to start the week,” said trader Castillo Trading in one of his recent posts on X.

Castillo Trading pointed to a decline in the impact of sales on the world’s largest exchange, Binance.

“A decent range has developed after last week’s lows, but there is much work to be done before this range can hold and actually range,” they continued in the next article.

A popular comment was the latest Manufacturing Purchasing Managers’ (PMI) report from the Institute for Supply Management (ISM) released today.

Above the key indicator of 50, the PMI confirmed that the US industry is returning to growth after a three-year hiatus.

Nick Bhatia, founder of global macro research firm The Bitcoin Layer, commented, “Bitcoin traded on strong US output this morning and high prices paid.”

“In the past month, more than 50 prints were confirmed today, the manufacturing industry is returning to expansion after three years of decline.”

US PMI data. Source: Nick Bhatia/X

Last month, Cointelegraph reported on the PMI’s implications for BTC price strength, the two traditionally being positively correlated.

Similarities of Bitcoin bear market remain

Many other market participants were cautious, including analyst account Wealthmanager, which noted the importance of $69,000 as a resistance zone.

related to: ‘This Is Not World War III:’ Five Things to Know in Bitcoin This Week

“The bearish flag formation is very clear to me,” trader Roman said of the daily time frame.

Roman uploaded a chart showing both the Relative Strength Index (RSI) and the Moving Average Convergence/Divergence (MACD) data that differ from the price.

“MACD/RSI is fully reset for another move lower. Still looking at the 52k area,” he told X followers.

Daily BTC/USDT chart with RSI, MACD data. Source: Roman/X

A report on signals from one of its proprietary trading tools, trading resource Material Indicators, also avoided optimism.

Bitcoin remains in lockstep with the 2022 bear market, and previous negative signs are converging.

“We start March with above signals from both Precognition Trend Algorithms on the $BTC Mothly chart. Like many of the other similarities I’ve highlighted with 2022, this is consistent with what we saw in March 2022,” X said in a post.

“That said, with a new war, growing geopolitical unrest, tariff uncertainty and an unstable US presidency, there is no shortage of potential catalysts that could nullify this signal, so caution is warranted here.”

BTC/US weekly chart. Source: Keith Alan / X

The founder of Material Indicators, Keith Alan, said that $69,000 was the first key obstacle for BTC price recovery.

“BTC bulls just broke the resistance at $69,000 and are targeting the next Timescape level at around $71,300. But first, they need to feed off the $70,000 liquidity,” he said.