Key Takeaways
- BTC declined 3.1% to approximately $70,182 in Friday’s Asian session
- The cryptocurrency reached a one-month peak of $74,000 on Thursday before facing rejection
- CryptoQuant’s Bull Score Index remains at a low 10/100, indicating bearish market conditions
- Technical breakdown at $74,000 resistance puts $60,000 level back in focus
- Increased US demand noted, though macroeconomic headwinds persist
Bitcoin experienced a notable retreat on Friday following a brief spike to $74,000 during the previous session, with the digital asset declining to approximately $70,182 in Asian market hours.
The cryptocurrency shed roughly 3.1% after momentarily reaching a monthly high on Coinbase Thursday, where it briefly tested the 50-day exponential moving average before encountering significant selling pressure.
Despite Friday’s setback, BTC is still positioned to close the week with gains of approximately 7%.
Escalating geopolitical risks contributed to market volatility. Military operations by the United States and Israel targeting Iranian positions prompted counterattacks involving missiles and drones, with hostilities now extending into their seventh consecutive day.
The ongoing conflict has heightened concerns regarding potential disruptions to oil transit through the Strait of Hormuz, a critical chokepoint responsible for roughly 20% of worldwide petroleum shipments. Crude oil prices surged over 16% during the week.
The spike in energy costs has reignited inflation worries, subsequently diminishing market expectations for aggressive Federal Reserve rate reductions. This dynamic bolstered the greenback while weighing on risk-sensitive assets like Bitcoin.
Bearish Indicators Still Dominant
Blockchain analytics platform CryptoQuant reported Thursday that Bitcoin continues to exhibit bear market characteristics, notwithstanding the recent price recovery.
Their proprietary Bull Score Index, which aggregates fundamental and technical data points, currently registers a mere 10 out of a possible 100. The analytics firm characterized the recent upward movement as “likely just a relief rally, not the start of a new bull phase.”
Nick Ruck, who serves as director at LVRG Research, attributed the rally to revitalized risk appetite and capital flows into exchange-traded funds, though noted it “quickly faced headwinds” as macroeconomic uncertainty and weakening momentum triggered a reversal.
Charts Suggest Downside Risk
From a technical analysis perspective, Bitcoin validated what market participants describe as a “failed auction” at the $74,000 resistance threshold. The asset briefly penetrated this level before experiencing a sharp reversal and settling back beneath it.
This price zone also coincided with the volume-weighted average price (VWAP), establishing a dual resistance barrier that ultimately rejected the advance.
With the value area high now compromised, market watchers indicate that a decline toward $60,000 — representing the prior weekly trough — becomes increasingly probable should downward pressure intensify.
Analysts at SwissBlock said Friday that “momentum is flashing a critical shift,” and that Bitcoin is “exiting peak negative momentum.”
Regarding demand dynamics, CryptoQuant observed a positive Coinbase Premium reading, indicating strengthened purchasing activity from United States-based market participants. Bitcoin spot demand from American investors transitioned from contraction to expansion mode.
Distribution pressure from active traders and long-term holders has subsided following unrealized losses reaching depths last witnessed in July 2022.
Bitwise Asset Management revealed a $233,000 charitable contribution to Bitcoin open-source developers, marking its second annual donation linked to performance of its spot Bitcoin ETF product.
Bitcoin was changing hands near $70,182 in early Friday trading.
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