Bitcoin dipped below $78,000 on Tuesday at the Wall Street open as risk assets fell amid renewed Middle East tensions. BTC/USD dropped as low as $77,600, marking its lowest level since September 3, before a modest rebound.
The sell-off coincided with a sharp move in oil markets. WTI crude oil surged toward $95 per barrel, its highest level since June 8, following reports of military strikes on Saudi Arabian cities and oil infrastructure. Brent crude oil targeted the $100 mark for the first time since July 24.
US equities also declined at the open of the first trading session after the Labor Day holiday. The S&P 500 and Nasdaq Composite Index were down 0.5% and 0.4%, respectively.
Critical Support Zone Under Watch
Analyst Rekt Capital warned that Bitcoin needs to hold the $78,300 level to avoid repeating a failed breakout pattern from May. At that time, BTC/USD reached $82,800 before reversing and consolidating at $78,300, eventually dropping to new lows near $57,000.
A weekly close below $78,300 followed by a bearish retest similar to early May would likely confirm a breakdown, according to the analysis. Should this support fail, BTC/USD would seal another lower high in a series stretching back to October 2025.
Rising oil prices have also fueled inflation concerns, with diesel prices hitting record levels. The Consumer Price Index is scheduled for release on Friday.
