Bitcoin traded around $67,000 on Sunday as markets digested fresh Middle East volatility and waited for a reaction when traditional markets reopen.
US stock index futures were down about 0.65% at the time of writing, while BTC avoided a decisive break from its local range.
Traders watch moving averages and a CME gap
Trader Michaël van de Poppe described the initial market response as “positive,” but said uncertainty remained around the US open and an unfilled CME futures gap.
Van de Poppe wrote:
“Now, markets are correcting back down, as there’s uncertainty on how US markets will open tomorrow (and there’s still an outstanding gap of the CME).”
He added:
“On the other hand, the 21-Day MA needs to break in order to have a relief rally.”
Van de Poppe flagged Bitcoin’s 21-day simple moving average near $67,627 and cited a downside CME gap around $65,880.
$73K–$74K targets resurface
Trader BitBull said BTC had reclaimed a support zone after a deviation lower.
BitBull posted:
“I think a rally towards the $73K-$74K level could happen.”
Other traders argued the weekend’s geopolitical risk may have been largely priced in, with one suggesting BTC could move sideways in the coming days.
Strait of Hormuz focus shifts to inflation
Separately, oil volatility came into focus after Iran claimed it was closing the Strait of Hormuz.
Trading resource The Kobeissi Letter, citing JPMorgan research, suggested the US Consumer Price Index could jump to 5%.
The Kobeissi Letter wrote:
“The last time we saw US inflation at 5% was in March 2023, when the Fed was aggressively hiking rates.”
The report followed recent US inflation data coming in above expectations, including Friday’s Producer Price Index print.
