Bitcoin clings to $105K as opinions diverge on oil price outlook

Key points:

• Bitcoin recovers from a trip below $103,000 with markets on edge over the Israel-Iran conflict.

• Oil steals the show on the day, but analysis is far from unanimous on the outlook.

• BTC price predictions see the rebound persisting, shaking off the likelihood of further losses.

Bitcoin ( BTC ) bounced past $105,000 around the June 13 Wall Street open as markets awaited cues from the Israel-Iran conflict.

Oil may yet see “final flush” after day of gains

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD staging a modest rebound after dipping to $102,816 on Bitstamp.

Geopolitical tensions had sparked snap losses across crypto and stocks overnight, while oil soared and gold hit two-month highs.

Both the S&P 500 and Nasdaq Composite Index were down around 1% on the day at the time of writing.

Reacting, crypto commentators had mixed opinions over how a resurgent oil price might impact Bitcoin and altcoins going forward.

“Oil up. Gold up. Bitcoin down,” crypto entrepreneur Anthony Pompliano wrote in part of an initial response on X .

Pompliano recalled earlier episodes in the Middle East tensions while predicting that BTC would eventually benefit.

“Bitcoin ended up outperforming the other two over the first 48 hours in that situation. Will be interesting to see what happens here,” he concluded.

Popular analytics resource Bitcoin Macro saw oil’s gains as potentially being short-lived.

“Oil might have significant move down after this. So far it looks clear that they aren't and won't be targeting Iran's oil facilities,” part of its own X material stated . 

“The premium might evaporate, and technically oil might have its final flush down before going up.”

In October last year, Arthur Hayes, former CEO of crypto exchange BitMEX, argued that a sea change in the Middle East would fuel both oil and BTC price action .

“Bitcoin is stored energy in digital form. Therefore, if energy prices rise, Bitcoin will be worth more in terms of fiat currency,” he said at the time.

Bitcoin price explores “double bottom level”

Among traders, short-term perspectives on BTC/USD remained optimistic.

Related: Bitcoin price Bollinger Bands 'failure' risks end of uptrend at $112K

Popular trader CrypNuevo noted that the price had returned to the 50-day exponential moving average (EMA), a trend line functioning as support since late April.

“I think we're good for more upside as long as we manage to hold the $100k psychological support level,” he told X followers.

Fellow trader Crypto Caesar predicted that Bitcoin would “recover soon,” calling the overnight lows a “double bottom level.”

“Nice bounce thus far & lack of follow through lower,” trader Skew continued on the topic.

“Expecting still some caution in markets today & over weekend for crypto regarding Iran & Israel. Likely to see tight correlation to global markets as well.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.