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- Bitcoin (BTC), Ethereum (ETH), and XRP extended their recovery as geopolitical concerns eased.
- Market sentiment rose after US President Donald Trump said Iran had reached out to discuss a possible deal.
- Bitcoin has surpassed the resistance level of $64,000, a breakout that could strengthen the short-term trend.
Bitcoin (BTC) extended its recovery on Friday, rising above the $64,000 level as a change in business sentiment helped a major recovery in the cryptocurrency market.
The recovery comes after political concerns eased following comments by US President Donald Trump, who said Iran had contacted the United States to discuss a possible deal.
The statement boosted hopes of a decline in tensions in the Middle East, prompting investors to back away from risk-adjusted assets.
Positive sentiment also supported Ethereum (ETH) near $1,800, while XRP stabilized after finding support near key technical levels.
Improving risk will help Bitcoin’s recovery
Cryptocurrency markets began to decline as fears about the recent rise in the Middle East began to subside.
Investor confidence rose after Trump indicated that Iran had begun contacting the United States for possible talks, raising hopes that diplomatic efforts could help avoid further tensions.
The change in market sentiment led to a repurchase of the digital asset, allowing Bitcoin to return to the most important level of technical resistance.
Bitcoin price analysis: Bull looks for major resistance levels
Bitcoin was trading around $64,300 at the time of writing, putting it below the all-important $65,000 level.
Although the recent pullback has strengthened the short-term momentum, BTC is still below several important indicators, which indicate that the market is not yet stable.
Bitcoin continues to trade below the 50-day Exponential Moving Average (EMA) at $65,399, the 100-day EMA ($68,991), and the 200-day EMA ($75,024).
These moving averages give the bull a strong resistance to the problem before confirming further changes.
Technical indicators show that the momentum is slowly reversing. The Relative Strength Index (RSI) has moved above the neutral 50 level, which indicates strengthening after several weeks of weakness.
At the moment, the Moving Average Convergence Divergence (MACD) is still in a positive zone, with the MACD line above zero and the histogram continuing to grow, indicating that the uptrend is gradually increasing.
Although these indicators favor buyers in the short term, they should not preclude a bearish trend.
Bitcoin’s first major resistance is near the $64,686 horizontal level. A daily close above this area would push the 50-day EMA at $65,399.
If buyers resolve the issue, interest may move to the 100-day EMA at $68,991, followed by the 200-day EMA at $75,024.
Beyond those levels, the next long-term resistance is around $84,410.
On the other hand, Bitcoin does not have a strong recovery point nearby, which makes the market vulnerable to a new sell-off in the form of a short-term recovery.
In these situations, traders can look to the $60,000 level of sentiment as the next major level where buying interest can emerge.
At the moment, the change in geopolitical opinion has given Bitcoin a brief support, but the bulls will need to return to $ 64,000 and overcome a group of central movements to strengthen the case to begin recovery.
