BTC Defends Support Zone as Oil Prices Slide Back, Leaving Brent and WTI Flat Despite Early Gains

Bitcoin Holds Firm Above $100K as Oil Pulls Back Despite Iran Tensions

Bitcoin maintained critical support above $100,000 on Monday, while oil prices reversed early gains, as markets showed surprising calm following U.S. airstrikes on Iranian nuclear facilities.

The geopolitical shock over the weekend briefly rattled traders after Iran threatened to block the Strait of Hormuz—a vital global oil route—in response to the U.S. action. But despite the initial surge, oil and crypto markets quickly stabilized.

Oil Rally Fizzles as Strait Closure Seen Unlikely

Crude initially spiked nearly 3% on fears of shipping disruption, with Brent hitting $77.79 and WTI reaching $78.58. But both benchmarks later gave up gains. Brent was last seen around $77, up just 1.4%, while WTI pulled back to $76.75.

Market sentiment cooled as analysts expressed doubt that Iran would follow through with the threat, which would risk damaging ties with key trading partners like China.

“Iran closing the Strait would alienate allies and escalate conflict across the region,” ING analysts noted, adding that over 80% of the strait’s oil exports go to Asia. Energy analyst Anas Alhajji called the move unlikely, labeling it a familiar bluff used since the 1980s.

Bitcoin Rebounds from Weekend Lows

Bitcoin briefly dipped below $98,000 during Sunday’s risk-off move but rebounded to above $101,000 by Monday. The drop sparked a surge in demand for downside protection, with short-term BTC puts on Deribit trading at an 8–10% volatility premium to calls. That premium has since narrowed as market fears faded.

Key horizontal support at $100,430 once again held, mirroring a similar bounce earlier this month that led to a sharp move toward $110,000. Traders now see that level as a short-term floor.

However, should BTC break lower, technical analysts are watching the $95,900 range, where both the 100-day and 200-day moving averages converge.