BTC Pulls Back Below $78,900 as US-Iran Tensions Escalate

Bitcoin's recent pullback has seen it trading below $78,900 on Tuesday after losing 1.53% the previous day.

Analysts suggest that BTC's setup remains constructive but not yet conclusive, keeping Friday's US inflation data in focus.

Rising tensions between the US and Iran are fueling concerns about energy supplies and inflation after Iran warned it could retaliate against further US attacks by targeting energy infrastructure.

The potential for higher energy prices to rekindle inflationary pressures underpins prospects for Fed policy tightening, which could weigh on BTC.