Bitcoin dipped below $81,000 at the opening of Friday's US trading session as broader market weakness and surging oil prices weighed on risk assets. BTC/USD fell to $80,988 before recovering to around $81,600, with traders focusing on the cryptocurrency's 50-day simple moving average at $81,781 as a key support level.
The weakness in Bitcoin coincided with declines across major US stock indices. The S&P 500 and Nasdaq Composite Index were down 0.6% and 0.2% respectively, while the Dow Jones Industrial Average fell 1.4%. The 10-year US bond yield remained below 5%, settling at 4.939%.
Oil prices climbed sharply on Friday as geopolitical tensions drove demand concerns. Brent crude reached $116 per barrel for the first time since March 19, while WTI crude surpassed $102 per barrel, its highest level since September 16. Economist Robin Brooks noted that the price increases occurred despite Persian Gulf oil flows approaching pre-war levels for many nations, suggesting markets were pricing in a substantial risk premium.
For Bitcoin's near-term direction, traders were watching whether bulls could reclaim the 50-day simple moving average by the daily close. According to Keith Alan, cofounder of Material Indicators, failure to hold this level could trigger support tests in the $78,000 to $80,000 range. Bitcoin has previously found support between $80,000 and $81,500, an area that holds the aggregate cost basis for spot Bitcoin exchange-traded fund investors.
