Required containers
- Bitcoin fell to $63,000 after international tensions in the Middle East dampened investor sentiment.
- The US military’s recent strikes on Iran and escalating tensions around the Strait of Hormuz have increased the need for safe havens while pushing cryptocurrencies.
- Spot Bitcoin ETFs recorded $197.4 million in weekly inflows, ending an eight-week outflow, but institutional buying failed to quell market uncertainty.
Bitcoin (BTC) traded below $63,000 on Monday as escalating tensions in the Middle East dampened the appetite of risk traders, covering institutional controls using Bitcoin exchange-traded funds (ETFs).
While Bitcoin ETFs posted their first weekly net gain in two months, fresh uncertainty surrounding the Strait of Hormuz kept the risk alive.
The growth of the Middle East creates a dangerous trade
Market sentiment was mixed after the United States launched new strikes against Iranian targets on Sunday.
According to the US Central Command (CENTCOM), the operation focused on Iran’s defense systems, the installation of coastal radars, military and military equipment, as well as naval equipment using military aircraft, warships, as well as naval and naval drones.
Iranian media reported several explosions near Sirik, Bandar Abbas, Qeshm, and Jask – areas close to major military installations around the Strait of Hormuz.
The situation escalated after Iran’s Islamic Revolutionary Guard Corps (IRGC) intercepted a merchant ship and announced it had closed the Strait of Hormuz, one of the world’s most important oil shipping routes.
The growing conflict prompted investors to reduce exposure to riskier commodities, driving West Texas Intermediate (WTI) crude oil above $75 a barrel while cryptocurrencies, including Bitcoin, also began to face selling pressure.
Despite the general weakness of the market, the demand for institutions showed signs of recovery.
According to CoinGlass, the US location of Bitcoin ETFs was attracted $197.4 million in gross revenue last weekthe end of eight weeks of consecutive outflows that began in mid-May.
The return of institutional buying shows that long-term investor confidence has not changed. However, new geopolitical uncertainty dampens the upside for Bitcoin’s price.
Bitcoin price analysis: Bears continue to defend $64,000
Bitcoin was trading at around $63,055 at the time of writing, remaining below the resistance level of $64,000.
The cryptocurrency continues to trade below all of its major moving averages (EMAs), highlighting the current state of the market.
The main resistance levels are:
- 50-day EMA: $65,192
- 100-day EMA: $68,686
- 200-day EMA: $74,736
These technical limitations continue to create a strong supply chain, and limit recovery efforts.
Momentum indicators suggest that the selling pressure may be easing, but a change in momentum is not yet evident.
The Relative Strength Index (RSI) remains below the 50 level, which indicates that buyers have not been able to control it.
Meanwhile, the Moving Average Convergence Divergence (MACD) is still in positive territory, indicating that the bearish trend has subsided.
However, most technical formations remain bearish as long as Bitcoin trades below major resistance levels.
The same resistance remains the horizontal barrier of $64,004, where recent rallies have repeatedly stopped.
If buyers retrace the level successfully, interest will shift to the 50-day EMA at $65,192, the 100-day EMA ($68,686), and the 200-day EMA ($74,736).
A further breakout could open the door for a long-term move towards the $84,410 resistance area.
On the other hand, Bitcoin does not have strong technical support immediately below current prices. If the selling pressure is increasing, traders can focus on the $60,000 level of sentiment, which could be the next big support area.
Meanwhile, Bitcoin’s long-term future will depend on whether global tensions subside and whether managing business needs through multiple ETFs can outpace financial risks and international spreads.
