Bitcoin reclaimed $65,000 on July 27, trading at $65,386 as the pause in US-Iran strikes drove oil lower and restored demand for risk assets. The cryptocurrency recovered from a daily low of $64,892 after moving between $64,892 and $65,744 during the session. Technical indicators showed improvement with 4-hour RSI reaching 58.64 and a bullish MACD crossover supporting the rebound, while $67,181 remains the key resistance with major downside liquidity concentrated near $63,000-$63,500. Bitcoin's recovery extended from the July 25 low near $63,700, with the cryptocurrency preserving the pattern of higher lows established at the beginning of July. The immediate catalyst came from the Middle East, where the United States and Iran refrained from attacking each other for a third consecutive day, with regional mediators reporting progress toward an interim ceasefire.
Brent crude experienced a dramatic 7% decline, falling to around $90.45 per barrel as the U.S. and Iran paused strikes over the Strait of Hormuz, sending oil prices tumbling from above $100. The move was felt across multiple asset classes with Nasdaq 100 and S&P 500 index futures up 1.36% and 0.80% respectively. The pause in hostilities has eased inflation fears that have weighed on risk assets for weeks, with gold and silver both higher as inflation concerns unwind. The CoinDesk 20 Index (CD20) has gained 0.1% since midnight UTC, 1.6% over 24 hours, showing broader market recovery from the oil-driven inflation concerns. Lower energy prices can reduce near-term inflation pressure, a factor that matters for US crypto investors ahead of the Federal Reserve's July 28-29 policy meeting, though futures markets still assigned a 33% probability to a rate increase, up from 16% a week earlier.
Trump's threats to Iran have intensified significantly as he told Axios that he is considering a 'massive attack' on Iran 'bigger than ever'. In a post on Truth Social, Trump stated: "If they do this again (Houthis attack), the US will hold Iran responsible, in that the Houthis are a Surrogate and/or Proxy of Iran, and major military punishment will be inflicted upon Iran and, of course, the Houthis, themselves." US Secretary of State Marco Rubio told reporters that Trump's approach to the Iran war as 'a head for an eye', according to CNBC. The escalation comes after Iran-aligned Houthis declared they were imposing a naval blockade on Saudi Arabia, which had been diverting its oil via pipeline to get around Iran's closure of the Strait of Hormuz. Iran had been pressing the Houthis to close the Bab el-Mandeb gateway to the Red Sea if the U.S. continued to attack Iranian power infrastructure.
Daily vessel transits through the Bab el-Mandeb strait increased to 32 on July 23, up from 26 the previous day, according to Kpler data cited by Reuters. Two crossings have been recorded for July 24 so far, with commodity vessel transits totalling 32 on July 23, up from 26 the day before. UBS analyst Giovanni Staunovo noted: 'In the right seas, ships are still moving... so it's not a complete blockade as some might have feared'. The Bab el-Mandeb shipping route, which controls access from the Red Sea to the Indian Ocean and is the world's second most important oil transit channel after the Strait of Hormuz, faces potential closure as Houthi attacks have raised fears about the closure of a second shipping chokepoint. The Iran-aligned Houthis had declared on Monday that they were imposing a naval blockade on Saudi Arabia, which handles about 2% of global daily crude supply.
Bitcoin remains inside an ascending parallel channel on the 4-hour chart, with the lower boundary passing through approximately $64,000 and the upper trendline approaching the $67,800-$68,000 region. The cryptocurrency rebounded from the lower trendline on July 25 and moved back above $65,000, preserving the pattern of higher lows established at the beginning of July. Momentum indicators have improved significantly, with the 4-hour relative strength index rising to 58.64 from below 40, placing it above its moving average of 47.45 without entering overbought territory. The moving average convergence divergence indicator completed a bullish crossover with its histogram increasing to 141.34, showing that positive momentum was rebuilding after the July 21-25 pullback. Bitcoin must now close above the daily resistance at $67,181 to leave its current consolidation range, with analysts identifying $68,000 as a possible target if US lawmakers make progress on the CLARITY Act.
DeFi tokens emerged as the standout winners with AAVE surging 9% and LDO rising 9.39%, while PUMP surged 12.24% to push its market cap toward $800 million from $570 million just two weeks ago. The CoinMarketCap's Altcoin Season indicator has risen to 55/100 and the average relative strength index (RSI) recovered to 51.88, both pointing to improving market sentiment. Other major gainers include XLM, LTC and XMR, while SHIB and AVAX have seen capital outflows. CoinMarketCap's Altcoin Season indicator has risen to 55/100 and the average relative strength index (RSI) recovered to 51.88, both pointing to a market that is gradually improving in terms of sentiment. Bitcoin's 30-day implied volatility index, BVIV, is in stasis near 40%, just above the recent two-month low of around 38%, signaling market stability.
