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Bitcoin (BTC) bounced back considerably over the weekend after US President Donald Trump rejected Iran's new peace proposal. This rejection could prolong the conflict in the Middle East.
Shortly after Trump’s remark in a post to Truth Social on Sunday that Iran's proposal is “TOTALLY UNACCEPTABLE.” Bitcoin's price fell from $81,430 to around $80,520 within 45 minutes. But the crypto king soon rallied with a 2.3% gain to reach over $82,300 within hours.
Amid BTC’s rise, CoinGlass data shows liquidations worth $386 million over the last 24 hours, led by $250 million of short liquidations, reflecting a mild bullish bias.
Trump's rejection of the proposed peace terms pushed Brent crude futures up by 4.14% to $105.5 a barrel, while US West Texas Intermediate (WTI) gained 4.80% to $100 a barrel. The US-Iran conflict over control of the Strait of Hormuz, which handles around 20% of the global oil supply, has caused disruptions in the financial markets.
Israeli Prime Minister Benjamin Netanyahu also raised concerns as he said the war would not be over until Iran's uranium facilities were destroyed.
US equities were relatively calm despite the continued uncertainty. The latest developments saw S&P 500 futures rise by 0.13%.
Analysts are hopeful that the coming policy decisions by the US may offer further assistance to BTC prices in the near future.
“Two catalysts stand out this week,” a Senate vote on Monday for Kevin Warsh's confirmation as Federal Reserve chair and the Senate Banking Committee’s markup on the CLARITY Act on Thursday, Thielen said.
The CLARITY Act is the “most significant piece of crypto legislation in years,” said Thielen, and better clarity in the regulations could help reduce institutional reluctance to digital asset investing.
“Both events work bullish for Bitcoin, regulatory clarity helps to remove institutional friction, and a smooth leadership transition at the Fed helps to avoid policy uncertainty that normally weighs on risk assets,” he added.
Also Read: Bitcoin News Today: BTC Eyes $88.88K as ETF Outflows Test Market Recovery
Even amid the ongoing US-Iranian conflict, Bitcoin has outpaced a number of traditional asset classes.
BTC has surged around 30% since the Middle East conflict erupted in late February, beating both gold and the S&P 500 gains during this period.
At press time, BTC trades at $80,950.77 with 0.24% increase in the last 24 hours. The asset maintains a mild bearish bias as the 200-day Exponential Moving Average (EMA) caps short-term recovery near $81,900.
The Relative Strength Index (RSI) at 62 on the daily chart indicates that bullish momentum persists, but the Moving Average Convergence Divergence (MACD) risks crossing below its signal line, suggesting rising selling pressure.
Immediate resistance is around $81,900. A sustained close above this level could open the door toward $90,000.
On the downside, demand is expected to emerge at 100-day and 50-day EMAs, now acting as support around $76,600 and $76,000, respectively.
