BTC Holds Key Support; Oil Disappoints ‘Doomers’ as Brent and WTI Erase Early Price Gains

American poet Charles Bukowski said perfectly, “The crowd is always wrong,” and it seems that his words perfectly summarize the situation in the financial markets.

Just 24 hours ago the social media was worrying worry that the American air section in Iranian nuclear places in combination with speech Iran Mulling The closure of the Hormuz Strait causes a massive increase in oil prices, which will lead to slip and cryptocurrency.

However, the reality proved to be different. Oil prices on both sides of the Atlantic have increased by only 3% and have since erased most of the profits, according to the sources of tradingView data.

Since writing, the Brent oil barrel has changed hands to $ 77, which is 1.4% per day. Prices increased and hit a five -month maximum maximum of $ 77.79. Similarly, West Texas Intermediate Crude (WTI) has reached a maximum of $ 78.58 before returning to $ 76.75.

Meanwhile bitcoin

The leading cryptocurrency according to market value increased over $ 101,000, reaching a minimum of $ 98,000 on Sunday, when the oil price concerns led to a short -term BTC on the deribit list concerning the calls of 8% -10% volatility. Futures linked to the S&P 500 were only 0.3% lower.

The predominantly damped response in oil prices suggests that the market does not expect Iran to follow its threats and block the Hormuz Strait, which could destabilize its key allies in Asia, especially in China.

“The price event suggests that the market does not believe (at least not yet) that flows through the hormuz, will be blocked. Brent is back below $ 80/BBL after briefly emerging at this level earlier in trading,” analysts said in the report to clients on Monday.

“With more than 80% of oil flows through Hormuz ending in Asia, the impact on the region would be greater than the impact on the US. Iran would therefore like to be careful in disturbing Chinese disturbances of oil flows,” added Ing.

According to an expert in the energy market, Anas Alhaiji is the Iranian threat to the closure of the strait to a large extent by a rhetorical tactic for home consumption, which has been employing at least 15 times since the age of 80. Alhajji explained the same va Post to xRevision of the 2018 fibers, which describes in detail how easier blocking is easier to put on than done.

“To close the Strait, it means the occupation and takeover of the Omani waters where most ships pass. This immediately provokes a GCC defense agreement: that is, war between all,” the thread said, adding that potential conclusion would hurt Iranian friends more than his enemies.

BTC holds key support

All this means that the large increase in the price of oil may not happen soon, which could help BTC and other risky assets avoid sale. A large increase in oil would increase the risk of slipping into stagflation, the worst result for most assets, including bitcoins.

The BTC graph shows that Bears on Sunday could not create support under horizontal support for $ 100,430. Buyers entered this level 5th June and reached up to $ 110,000 in the coming days.

The muted reaction of the oil suggests that history is repeated. On the other hand, accepting under support will shift the focus on the confluence of 100 and 200 -day simple moving averages to approximately $ 95,900.