BTC Strives to Maintain $70K Level as Inflation Fears Intensify
The leading cryptocurrency attempts to find stability around the $70,000 mark as elevated oil prices and declining equity markets fuel investor anxiety about US inflation prospects.
The rapid pushback Bitcoin (BTC) experienced from its $76,000 range peak on Tuesday, followed by a subsequent decline beneath the $70,000 threshold, has sparked worry among market participants that the cryptocurrency has not yet established its floor.
According to chartered market technician Aksel Kibar, a bearish wedge formation reminiscent of the pattern observed between December 2025 and early January 2026 could be developing once more.
According to Kibar,
"Breakdown of the lower boundary will be the signal for a possible move towards $52.5K."
The technician additionally pointed to an X platform post dated Jan. 18, 2026, in which he outlined that BTC must honor its year-long moving average as "part of the chop and search for a base."
According to Kibar's analysis, "the pattern can become a rising wedge, usually bearish in an attempt to test $73.7K-$76.5K support area."
Bitcoin follows US stocks as high oil prices and rising inflation rock markets
The drop in Bitcoin's value below the $70,000 level came in tandem with significant losses across US equity markets, as market participants grew increasingly anxious about crude oil valuations, the financial burden of the US and Israel-Iran conflict, and the potential ramifications for inflation, ultimately eroding investor sentiment.
Addressing how current policy choices by the Trump administration might affect inflation rates, The Kobeissi Letter stated,
"The market now sees a 50% chance of a US Fed rate HIKE by the end of 2026. Just months ago, markets saw as many as four rate CUTS this year."
Within their BTC Options Weekly analysis, researchers at Glassnode determined that "Bitcoin has reintegrated its range after a short-lived deviation above the $75K level."
The research team noted that in the options marketplace, Bitcoin's "short gamma at $75K has been unwound."
"Beneath the pullback, the breakout has lost momentum and range conditions are returning."