Bitcoin faces key support test at $78.3K as US crude oil hits three-month high

Bitcoin (BTC) dipped below $78,000 at Tuesday’s Wall Street open as risk assets fell on renewed Middle East tensions.

Key points:

• Bitcoin briefly dropped under $78,000 for the first time since Sept. 3, following downside pressure on US equities.
• WTI crude oil hit three-month highs near $95 per barrel on renewed military strikes in the Middle East.
• Bitcoin needs to hold $78,300 to avoid a repeat of its May breakdown, analysis warns.

Bitcoin, stocks fall as Middle East woes spark oil surge

Data from TradingView showed BTC/USD dropping as low as $77,600 before a modest rebound, its lowest levels since Sept. 3.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

News of Houthi strikes on Saudi Arabian cities and oil infrastructure pressured US stocks at the start of the first trading session after the Labor Day holiday. The S&P 500 and tech-heavy Nasdaq Composite Index were down by 0.5% and 0.4%, respectively, at the time of writing.

S&P 500 one-day chart. Source: Cointelegraph/TradingView

Oil prices showed a more pronounced reaction to the events, with WTI crude surging toward $95 per barrel, its highest since June 8. Brent crude targeted the $100 mark for the first time since July 24.