BTC Price Eyes Recovery As Iran Adopts Bitcoin for Oil Transit Fees

Iran has required all the ships passing through the Strait of Hormuz to pay their transit fees in Bitcoin, a move that could boost demand significantly. Meanwhile, the daily chart shows that BTC price has been making a steady recovery for nearly two weeks, leading to the formation of a bullish pattern with a target price of $86,000.

Iran to Charge Oil Transit Fees in Bitcoin

According to a report by the Financial Times, Iran is demanding that shipping companies pay toll fees in cryptocurrencies to be allowed to pass through the Strait of Hormuz. The spokesperson for Iran’s Oil, Gas, and Petrochemical Products Exporters Union, Hamid Hoseinni, specifically mentioned Bitcoin as the authorized means of payment.

According to Hoseinni, shipping companies are required to pay $1 per barrel of oil or $2M per ship. If each payment is made in Bitcoin, this will drive a surge in demand for BTC, leading to a price increase.

According to Crypto commentator Lark Davis, 20 million barrels of oil pass through the Strait of Hormuz every day. That means that potentially $2M worth of BTC could be used at the Strait daily. Davis notes that this is 270 times the daily 1 BTC buy of El Salvador.

The US-Iran war has been driving volatility in BTC price. After President Trump announced a two-week ceasefire, Bitcoin surged, and it was still holding on to those gains. At press time, BTC traded at $70,849, with an over 4% intraday gain.

BTC Price Targets $86K If Bullish Pattern Holds

The daily chart shows that since March 30, the price of Bitcoin has been making a steady recovery. Since then, it has bounced from $66,797 to above $70,000 as buying momentum resumed due to easing geopolitical tensions.

This recovery has created a rounding bottom pattern that will mature if BTC tests resistance at $74,884. If this resistance level breaks and is flipped to support, the next bullish leg could spark an over 15% rally to $86,133, supporting a bullish long-term Bitcoin price forecast.

The RSI reading of 55 confirms that the ongoing recovery might continue because the momentum is still bullish. However, the slight tip south shows that some buyers who bought during the rally might be selling to take profits.

On the other hand, the Average Directional Index (ADX) line paints a grim picture of Bitcoin’s performance. By tipping south, the ADX shows that the uptrend that started on March 30 is not strong. Hence, a downward reversal could happen, leading to BTC price failing to break the $74,884 resistance level.