Bitcoin Taps New Support as Oil Prices Drop Below $90
Bitcoin (BTC) stabilized around $86,000 on Tuesday as crude oil prices dipped below $90 per barrel for the first time in nearly three weeks.
The decline in oil prices was triggered by reports that Saudi Arabia had reopened the East-West Pipeline, a key oil-supply route. This development led to WTI crude oil prices falling to near $89 per barrel before recovering to around $92.
Despite this volatility, Bitcoin continued to trade steadily around $86,000, which has emerged as a new support level for the cryptocurrency.
Data from TradingView shows that the volatility of BTCUSD cooling after reaching a 33-week high on Monday. The one-hour chart indicates a consolidation phase for Bitcoin.
Onchain analytics platform Glassnode noted that the market value to realized value (MVRV) ratio has crossed above its 365-day moving average, a sign of increasing unrealized profits among wallets. This indicator has historically marked the beginning of bull markets in the past.