[Bitcoin retreated to around $66,000 after Tuesday’s Wall Street opening, despite stock market gains fueled by a potential US-Iran peace deal.][While the S&P 500 added over 1.5% and oil prices hit three-month lows, Bitcoin failed to leverage the tailwinds and diverged from other risk assets.][Trader analysis cited $70,000 as a likely local top target, with short-term liquidation data from CoinGlass showing over $230 million in crypto shorts were erased.]
Bitcoin cooled its recent rebound on Tuesday, dropping to around $66,000 as the stock market surged on optimistic geopolitical news. The S&P 500 index gained over 1.5%, while U.S. WTI crude oil slumped to its lowest levels in three months. However, the positive correlation between equities and Bitcoin temporarily broke down, as the cryptocurrency struggled to gain upward momentum despite what should have been favorable conditions.
According to data from TradingView, BTC price action came off its highest levels in nearly two weeks. Consequently, market observers noted that the drop in energy prices acted as a tailwind for equities, creating a spillover effect in the stock market. Meanwhile, traders focused on Bitcoin’s specific technical landscape, with most analysis pointing to an eventual test of higher resistance levels.
“Still eyeing the 70k level for our bounce to be completed,” trader Roman told his X followers. Many agreed, suggesting Bitcoin could linger in its current range for several weeks, especially as summer typically brings lower market liquidity and volatility. Conversely, some analysts expressed doubt over the strength of the $60,000 support level, arguing the recent bear market might be too young to be over already.
Data shows short liquidations in the crypto market totaled $230 million over 24 hours at the time of writing. This activity followed what trader Killa described on X as a “classic market psyop,” where market makers and algorithms allegedly lured traders into expecting new lows that never materialized. Ultimately, the mixed signals left the market in a cautious state, watching for Bitcoin’s next decisive move.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
