Bitcoin Hits 7-Week Lows as US-Iran Peace Deal Collapses, Oil Spikes

Bitcoin (BTC) hit new seven-week lows on Monday amid a collapsing peace deal between the US and Iran.

Key points:

Bitcoin falls quickly as it appears that Iran is withdrawing from peace negotiations.

Oil spikes while stocks avoid volatility, but not even solid US PMI data can save BTC price action.

Analysis warns that Bitcoin may bring back its old 2024 peak as new resistance.

BTC price nears $70,000 on new Iran woes

Data from TradingView showed BTC/USD nearing $71,000 for the first time since mid-April.

BTC/USD one-day chart. Source: Cointelegraph/TradingView

The pair suffered as it appeared that a 60-day ceasefire to halt the US-Iran war would not go ahead.

“Talk about a turn of events,” trading resource The Kobeissi Letter reacted on X.

Kobeissi referenced changing rhetoric around the peace negotiations, which US President Donald Trump had suggested were imminent as recently as the weekend.

“Exactly 9 days ago, President Trump said a deal with Iran was coming ‘shortly,’" it continued.

“Today, Iran has officially backed out of all negations with the US and is threatening to block both the Strait of Hormuz and Bab el-Mandeb. It’s going to be an eventful month.”

CFDs on US WTI crude oil one-day chart. Source: Cointelegraph/TradingView

US WTI crude oil neared $95 on the back of the latest developments, putting renewed attention on inflationary forces.

Stocks, however, managed to avoid major losses, continuing a trend of “pricing in” turbulence around Iran.

S&P 500 one-hour chart. Source: Cointelegraph/TradingView

Bitcoin thus failed to enjoy a relief bounce on US manufacturing data, which remained in an uptrend — something that had supported BTC price action since February.

The May print of the Institute for Supply Management (ISM) Manufacturing Purchasing Managers’ Index (PMI) came in at 54%, marginally below expectations but still 1.8% higher than in April.

“A Manufacturing PMI® above 47.5 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the May Manufacturing PMI® indicates the overall economy grew for the 19th straight month,” ISM commented.

US manufacturing PMI data (screenshot). Source: ISM

Bitcoin risks flipping 2024 highs to resistance

Bitcoin traders were predictably nervous about the latest down move, seeing pressure continuing in the short term.

Related: Trump says Iran will ‘work out well’: Five things to know in Bitcoin this week

Commenting, trading account Cryptic Trades told X followers that $71,800 was of key importance, now failing to hold back sellers.

“$BTC must hold above this level in order to keep the bullish outlook intact. Else, it would be a clear structural and trend invalidation,” it warned.

BTC/USD one-day chart. Source: Cryptic Trades/X

Trader and analyst Rekt Capital noted that the price was rejecting near old all-time highs from 2024 at around $73,800.

“Unless Bitcoin reclaims the 2024 ATHs soon, this sequence of technical events increases the chances of Bitcoin revisiting the 2021 All Time Highs for a retest,” he predicted.

BTC/USD one-month chart. Source: Rekt Capital/X