TLDR
- Bitcoin retreated 3.1% to approximately $70,182 in Friday’s Asian session
- BTC touched a one-month peak of $74,000 on Thursday before being rejected
- CryptoQuant’s Bull Score Index remains at a bearish 10 out of 100
- Technical failure at $74,000 resistance has analysts monitoring $60,000 support zone
- Demand from US investors has strengthened, though macroeconomic headwinds persist
Bitcoin experienced a notable retreat on Friday following a brief spike to $74,000 the previous day, declining to approximately $70,182 during Asian market hours.
The roughly 3.1% decline occurred after BTC reached a one-month peak on Coinbase Thursday, momentarily testing the 50-day exponential moving average before encountering strong selling pressure.
Despite this setback, Bitcoin is still positioned for approximately 7% gains over the weekly timeframe.
Escalating geopolitical tensions contributed to market instability. Coordinated US and Israeli military operations against Iran sparked retaliatory drone and missile counterattacks, with hostilities now extending into their seventh consecutive day.
The ongoing conflict has intensified worries regarding oil supply disruptions through the Strait of Hormuz, a critical chokepoint responsible for approximately 20% of worldwide petroleum flow. Crude oil prices surged over 16% throughout the week.
Elevated energy costs have amplified inflation anxieties, subsequently diminishing market expectations for Federal Reserve rate reductions. This dynamic bolstered the US dollar, creating headwinds for risk-sensitive assets like Bitcoin.
Bearish Indicators Persist
Blockchain analytics provider CryptoQuant stated Thursday that Bitcoin continues to operate within bear market parameters, notwithstanding the temporary price surge.
Their proprietary Bull Score Index, which synthesizes fundamental and technical data points, registers merely 10 out of a possible 100. The firm characterized the recent upward movement as “likely just a relief rally, not the start of a new bull phase.”
Nick Ruck, director at LVRG Research, attributed the rally to revitalized risk appetite and exchange-traded fund inflows, but noted it “quickly faced headwinds” as macroeconomic uncertainty and weakening momentum dragged valuations lower.
Technical Analysis Suggests Downside Risk
From a chart perspective, Bitcoin validated what market participants identify as a “failed auction” at the $74,000 resistance threshold. Price momentarily penetrated above this level before sharply reversing and settling back underneath.
This price point also coincided with the volume-weighted average price (VWAP), establishing a formidable double resistance barrier that ultimately repelled buyers.
With the value area high now breached to the downside, market observers suggest a decline toward $60,000 — the prior weekly low — becomes increasingly probable should selling momentum intensify.
Analysts at SwissBlock stated Friday that “momentum is flashing a critical shift,” noting that Bitcoin is “exiting peak negative momentum.”
Regarding demand dynamics, CryptoQuant identified a positive Coinbase Premium, indicating strengthening purchasing activity from United States-based market participants. Bitcoin spot demand from American investors transitioned from contraction into expansion mode.
Distribution pressure from active traders and long-term holders has diminished following unrealized losses reaching depths last observed in July 2022.
Bitwise Asset Management revealed a $233,000 contribution supporting Bitcoin open-source development initiatives, marking its second annual donation linked to performance from its spot Bitcoin exchange-traded fund.
Bitcoin was changing hands near $70,182 during early Friday trading hours.
