Bitcoin slipped below $77,000 on Monday, failing to rally even as oil prices fell sharply on hopes of a diplomatic resolution to the US-Iran conflict.
According to TradingView data, BTC declined about 1.7% after briefly reaching $78,750 following the weekly close, then extended its recent weakness below the $77,000 mark. The cryptocurrency had failed to break above $78,500, a level analysts are watching closely.
Oil Retreat Offers Little Support
Oil prices dropped after US Secretary of State Marco Rubio indicated Washington preferred a diplomatic solution to the conflict. West Texas Intermediate crude fell more than 7%, briefly touching $95.15 per barrel, its lowest level since October 15. Brent crude also fell about 9%, trading near $103.30.
Although lower energy prices offered some relief to financial markets, Bitcoin did not capitalize on the improved sentiment.
Midterms and AI Spending Concerns Weigh on Sentiment
Broader market uncertainty persisted ahead of the US midterm elections. Concerns about technology companies' artificial intelligence spending also limited the recovery in equities, with recent corporate earnings and forward guidance intensifying questions about the profitability of large AI investments.
Gold moved in the opposite direction, rising about 2% and recovering above $3,950 per ounce after reaching a 13-month low of $3,891. The divergence highlights the uncertainty facing investors as they assess geopolitical developments, corporate earnings, and the potential implications for interest rates and risk-sensitive assets.
Technical Analysts Focus on $76,000
Analysts are monitoring whether Bitcoin can hold support around $76,000. Crypto analyst Rekt Capital warned that BTC's unsuccessful attempt to break through resistance at $78,500 could leave the market vulnerable to another decline.
QCP Capital identified the $76,000–$76,600 range as an important support zone, noting that the area had triggered upward reversals on four occasions since September.
A sustained move above $79,500 could help Bitcoin recover a previously lost trading range. However, a breakdown below support could expose the 50-week moving average near $75,700, followed by the 200-day moving average around $73,100.
For now, Bitcoin faces the risk of another drop given its inability to rebound alongside falling oil prices, suggesting traders remain cautious. The next move will likely depend on whether buyers defend the $76,000 region or selling pressure pushes BTC toward lower technical support.
