Bitcoin Breaks $70,000 as Sentiment Returns to ‘FOMO Territory’

Bitcoin is viewed as a risk asset, leaving its price sensitive to war, oil prices, inflation and U.S. Treasury yields. The U.S.-Iran conflict and the Strait of Hormuz standoff pushed crude oil to a three-week high. Renewed inflation concerns also drove funds out of cryptocurrencies, while traders focused on whether Bitcoin could hold its 21-week exponential moving average.

On Monday, April 27, Bitcoin fell as low as $76,567, losing more than 2% on the day and slipping below $77,000. U.S. spot Bitcoin ETFs recorded about $1 billion in net outflows the previous week. Analysts said BTC must hold its 21-week EMA and break through resistance at $80,000 to confirm a macro bullish shift.

Bitcoin tumbled from about $98,000 to $60,000 in early 2026, losing nearly 40% in just two weeks and making $73,000 a key test of whether the rebound can develop into a sustained trend. A “bull trap” occurs when prices reverse sharply after a breakout, trapping buyers who chased the rally. The latest advance is therefore also seen as a test of whether the bear market has ended.

On March 16, Bitcoin gained more than 3% over 24 hours to $73,700 and rose above its 50-day moving average of $71,125 for the first time in two months. An FxPro analyst called it a sign of a medium-term reversal. CoinDesk, however, reported that market makers held billions of dollars in net short gamma exposure near $75,000, potentially amplifying volatility. Whether the breakout can hold remains uncertain.

Bitcoin is often viewed as a highly volatile risk asset, yet its price has remained relatively steady as the conflict involving Iran intensifies and concerns over energy supplies and inflation mount. Markets are also awaiting the U.S. Commerce Department's PCE price index for clues on the Federal Reserve's interest-rate path, while Trump has again publicly called on the Fed to cut rates.

As of April 13, Bitcoin had broken above $72,000 and was advancing toward $73,000. BTC held above $71,000 even after Trump warned of possible strikes on Iran's oil-rich Kharg Island. Traders maintained an $80,000 price target, underscoring Bitcoin's outperformance against most macro assets weighed down by the war and economic data.