Crypto Markets Rattle As Bitcoin Sinks Under $77K Following Oil Spike

Bitcoin’s technical indicators had just started flashing warning signs when crude oil markets made things worse. The MACD histogram turned red — a signal that buying pressure was fading — right as West Texas Intermediate crude surged past $104 a barrel, rattling risk assets across the board.

BTC had clawed its way above $78,000 earlier this week, briefly restoring confidence among buyers. That recovery is now gone. The cryptocurrency slipped below $77,000 on April 28, trading at $76,180 — its lowest level since April 22, when it had just reclaimed that threshold after weeks of struggling beneath it.

The $77,000 mark carries weight in Bitcoin’s recent history. The asset first broke below it in early February and spent a prolonged stretch under it. A failed retest on April 17 kept sellers in control. The brief breakout on April 22 looked like a turning point. It wasn’t.

For Bitcoin to get back on track, analysts say it needs to retake $77,000 and push through the upper Bollinger Band near $79,850. Until then, the immediate floor sits around $75,490, near the middle Bollinger Band — a level BTC has bounced from before, though holding it is far from guaranteed.

The backdrop driving the sell-off is a breakdown in US-Iran negotiations. On April 27, Iran put forward a new proposal through Pakistani intermediaries. The offer included reopening the Strait of Hormuz and lifting a US blockade, while asking to push nuclear discussions to a later stage.

US President Donald Trump rejected it. His administration made clear that the terms didn’t go far enough — particularly on nuclear weapons, which Trump said Iran could not be allowed to develop.

A planned US delegation trip to Islamabad had already been canceled after earlier Iranian terms were seen as insufficient, with travel security concerns also cited. Indirect back-channel communication continues, but face-to-face talks remain frozen.

Oil markets moved fast. WTI crude shot from $98 to a peak of $104 before pulling back slightly to $101. That still left it up 2.50% on the day and more than 4% on the week, following a 12.70% surge the prior week.

Bitcoin retreated 2% on April 28 after sliding 1.64% the previous day. The consecutive losses erased what had looked like a meaningful recovery, leaving the asset more than $3,000 below where it traded just days earlier.

Broader market uncertainty tied to Middle East tensions is adding to the pressure. When oil climbs sharply, it typically signals supply fears and geopolitical instability — conditions that tend to push investors away from higher-risk assets like crypto.

Featured image from MetaAI, chart from TradingView