Bitcoin Tumbles Below $78K as Oil Prices Soar to Three-Month High

Bitcoin's price briefly dipped below $78,000 on Tuesday, marking its first move under this level since September 3. The drop was largely driven by a broader risk-off move following renewed Middle East tensions.

US equity markets fell in early trading, while crude oil surged, adding fresh inflation concerns ahead of upcoming US data. WTI crude climbed towards $95 per barrel, and Brent targeted the $100 area, intensifying inflation sensitivity.

Trader Rekt Capital pointed out that Bitcoin's behavior is resembling a failed breakout scenario from May, with the market structure echoing the retest of the $78,300 zone. If this zone does not hold, the market could print yet another lower high, according to Rekt Capital.