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- BTC is up 4% and is now trading above the $66,500 level.
- The meeting comes in the wake of reports of the first peace agreement between the United States and Iran.
Bitcoin extends recovery after geopolitical success
Bitcoin (BTC) rose above $66,600 on Monday after gaining 4% over the past week, helped by easing global risk sentiment following reports of the first peace deal between the United States and Iran.
Easing political tensions helped lift the economy across financial markets, adding to Bitcoin’s strength after weeks of uncertainty.
However, despite the rise in prices, institutional demand remains under pressure, with Bitcoin exchange-traded funds (ETFs) recording another breakout week.
Investors’ sentiment rose sharply after the leaders of the two countries indicated that they were moving ahead with diplomatic elections.
The Supreme National Security Council of Iran has confirmed that Tehran has concluded a Memorandum of Understanding (MoU), stating that military operations in all areas, including Lebanon, will cease immediately and forever.
On the US side, President Donald Trump announced through Truth Social that he has allowed the reopening of the Strait of Hormuz and lifted the US military blockade.
Some hope appeared after Pakistan’s Prime Minister Shehbaz Sharif said that the final agreement was expected to be signed in Switzerland on Friday.
Iran’s Deputy Foreign Minister, Kazem Gharibabadi, said that the main talks will continue during the proposed 60-day ceasefire, with sanctions relief and Iran’s nuclear program expected to be the main points of discussion.
The developments have eased fears of a major regional conflict, prompting investors to return to high-risk assets such as cryptocurrencies.
Institutional demand continues to weaken
Despite the dramatic shift in sentiment, institutional mobility remains a concern for Bitcoin bulls.
Data from SoSoValue shows that US Bitcoin ETFs recorded outflows of about $315.84 million last week, marking the fifth consecutive week of withdrawals since mid-May.
The oversupply keeps investors cautious, despite the rising market conditions.
Continued ETF trading could reduce Bitcoin’s liquidity and increase the risk of further volatility if trading demand fails to offset institutional withdrawals.
Bitcoin’s technical trends are showing an uptrend
The BTC/USD 4-hour chart has turned lower as Bitcoin’s long-term uptrend has extended, but the upside remains elusive.
BTC is currently trading above key support levels after recovering nearly 4% last week. However, the cryptocurrency remains below its major moving averages and the previous broken down trend line, which indicates that the major market remains intact.
Momentum indicators are starting to change. The Moving Average Convergence Divergence (MACD) has turned positive, while the Relative Strength Index (RSI) has risen to around 71.
Although these signs indicate stability, they are not strong enough to confirm complete reversal.
If the recovery continues, Bitcoin may surpass the 50-day EMA of $70,704 soon. A daily candle that closes above this level may allow BTC to extend its rally to the $73,412 resistance area (100-day EMA).
However, if the bears resume, the first level of support will be around $64,004. A break below this area could rekindle bearish pressure and increase the likelihood of a deeper move even though recent signals have stabilized.
Meanwhile, Bitcoin is still caught between changing big ideas and weakening corporate participation.
