Bitcoin’s price fell nearly 3% on Wednesday as investors booked profits following its sharp rise above $75,000 the day before amid renewed hopes for peace talks between the United States and Iran.
Summary
- Bitcoin fell around 3% to an intraday low of $73,617 following a 7% rally the day before, as traders took profits after the rise above $75,000.
- Market sentiment was influenced by renewed hopes for peace negotiations between the United States and Iran, although geopolitical uncertainty and delays in negotiations kept volatility high.
- Technical indicators remain bullish, with an ascending triangle pattern in play and key resistance near $76,000, while downside risk emerges below $72,000.
Bitcoin price fell today as investors booked profits following yesterday’s strong rebound. It’s quite common for investors to take profits, especially when such a significant rally occurs after days of intense volatility amid geopolitical conflict.
Risk aversion is not limited to Bitcoin and cryptocurrencies, as traditional safe-haven assets such as gold and silver also fell slightly today after crude oil prices rose again following the sharp drop below $100 yesterday.
According to data from crypto.news, the price of Bitcoin (BTC) fell 3% to an intraday low of $73,617 on Wednesday after paring some of its gains from the previous day, when the indicator rose 7% to near $76,000.
The rebound came amid renewed hopes for a more concrete ceasefire between the United States and Iran following reports that Iran was willing to negotiate new terms regarding its nuclear program and maritime conduct.
Most recently, US President Donald Trump told Fox News that the war was “almost over” after hinting at a second round of face-to-face talks with Iran in Islamabad in the next two days. However, with the Pakistani Prime Minister out of the country until April 18, the negotiations could experience some delays.
The diplomatic push follows the United States launching a naval blockade in the Strait of Hormuz to halt economic trade in all maritime goods entering and leaving Iran.
The Iranian government had previously called the move state-sanctioned piracy, while it itself implemented a controversial toll system in the region, apparently to recoup losses of nearly $270 billion in direct and indirect damage to the nation since the start of the US-Israeli war on February 28.
Despite Bitcoin’s slight decline today, its market structure continues to exhibit a bullish bias for the coming sessions.
On the daily chart, Bitcoin price action has formed an ascending triangle which constitutes a bullish continuation trend if the price rises above the resistance level. At press time, Bitcoin price action was approaching the trend’s upper horizontal trendline, suggesting that a decisive move from the bulls could confirm the trend.
Technical indicators still support this bullish outlook. Notably, the MACD lines pointed higher while the RSI bounced from the neutral threshold to 60, showing that there is still room for further appreciation before reaching overbought territory.
Therefore, the next key resistance for Bitcoin lies at $76,000. A break above the trendline could trigger a rally towards the $80,000 mark.
On the contrary, if Bitcoin price falls below $72,000, it could invalidate the current bullish setup and lead to a retest of the support near $70,000.
Disclosure: This article does not represent investment advice. The content and materials presented on this page are intended for educational purposes only.
