Bitcoin, Ethereum, XRP, Dogecoin Fall, While Oil Surges Amid Middle East War: Analytics Firm Says BTC Is 'Still In A Bear Market'

Leading cryptocurrencies pulled back sharply on Thursday, while oil supply disruptions driven by the war in the Middle East kept investors on edge.

Reversal For Crypto Market

Bitcoin corrected after Wednesday's rally to $74,000, while Ethereum and other large-cap coins also gave up gains.

Shares of cryptocurrency-linked companies also reversed, as Strategy Inc. (NASDAQ:MSTR) and Coinbase Global Inc. (NASDAQ:COIN) closed down 4.53% and 1.54%, respectively.

Over $250 million was liquidated from the market in the last 24 hours, predominantly from long positions.

Open interest in Bitcoin futures fell 5.78% in the last 24 hours. Retail derivative sentiment on Binance was "Neutral," while whale traders bought the dip, according to the Long/Short ratio.

“Extreme Fear” sentiment dominated the market, according to the Crypto Fear & Greed Index.

Top Gainers (24 Hours) 

The global cryptocurrency market capitalization stood at $2.41 trillion, shrinking by 2.19% over the last 24 hours.

Stocks Fall, Oil Hits Multi-Month Highs

The stock market took a U-turn on Thursday. The Dow Jones Industrial Average fell 784.67 points, or 1.61%, to 47,954.74. The S&P 500 pulled back 0.56% to close at 6,830.71, while the tech-focused Nasdaq Composite slid 0.26% to end at 22,748.99.

West Texas Intermediate crude futures topped $80 per barrel for the first time since July 2024, but eased later in the day after Iran's mission to the UN dismissed claims about the closure of the Strait of Hormuz as "baseless and absurd."

This comes days after Iranian state media reported that Tehran closed the critical oil shipping route and warned it would fire on any vessel attempting to pass. Moreover, traffic along the narrow channel on Iran’s southern border has dried up since the war began, according to a report by NPR.

‘Just A Relief Rally’

Widely followed cryptocurrency analyst and trader Ali Martinez highlighted $2,147 as a key resistance level on Ethereum's 4-hour chart, with potential targets at $2,335 and $2,542 if price holds above it.

Blockchain analytics firm CryptoQuant stated that Bitcoin's latest uptick was simply a "relief rally" and not the start of a new bull market.

"If Bitcoin continues higher, the first major resistance sits near $79,000," CryptoQuant added. "A stronger resistance level sits near $90,000, at the traders' realized price, a level that capped prices during a previous rally earlier in the year."

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