- The BTC price rebounded to $70,500 as President Trump’s Truth Social announced a ‘productive’ diplomatic talk with Iranian officials to resolve the Middle East conflict.
- Bitcoin’s ongoing recovery reveals the formation of a bearish continuation pattern called an inverted flag.
- The Fear and Greed Index at 8% indicate the broader market sentiment remains strongly bearish.
The king of cryptocurrencies, Bitcoin, is up over 5% during U.S. market hours on Monday, to trade at $70,500. A primary catalyst for this surge followed easing geopolitical tension as United States President Donald Trump announced a five-day pause on military action against Iran, reducing immediate war risk. While a suitable jump in trading volume supports this relief rally, the technical chart highlights a bearish continuation pattern that could drive a prolonged downswing in BTC price.
Crypto Climbs with Stocks as Trump Halts Iran Strike Plans
On March 23rd, the cryptocurrency market witnessed a significant inflow, reaching a market cap of $2.44 trillion with an intraday growth of 3%. The buying pressure aligns with a surge in major U.S. stock indices, including the Dow Jones Industrial Average (DJI), rising 1.4%, and the S&P 500 (GSPC) trading up 1.19%.
A key catalyst to this surge can be attributed to recent comments from Donald Trump, who declared a 5-day pause on planned US strikes against Iran’s power plants and energy infrastructure.
In a post on Truth Social, Trump reported “very good and productive conversations” with Iran in the past two days to seek a “complete and total resolution” to hostilities in the Middle East. He directed the Department of War to hold down any attacks on energy targets, subject to the outcome of continuing discussions.
As a result, BTC price rebounded over 5% to reclaim the $70,000 mark, triggering a relief rally in the overall crypto market.
However, a semi-official news agency in Iran, Tasnim News, reported that no such negotiation has occurred, and Trump retracted from issuing military threats and financial market pressures on US bonds.
This flurry of news has further triggered volatility in global oil prices. Today, the Brent Crude Oil futures plunged more than 10% to waver around $100 per barrel.
However, the news-driven surge lacks a solid foundation, and any conflicting reports of escalating Middle East tensions would trigger another downturn in the crypto market.
Key Levels To Watch As BTC Price Reclaims $70,000
Over the past six weeks, the BTC price has wavered around the $70,000 mark amid the escalating conflict between the U.S, Iran, and Israel. This consolidation, projecting several rejections from either side suggest lack of initiation from buyers or sellers to drive a sustainable recovery.
However, a closer look at the daily chart shows that the BTC price is still respecting the two ascending trendlines of an inverted flag pattern. The two rising trendlines of the pattern act as a relief rally before sellers recapture the bearish momentum for the next breakdown.
Based on the Bitcoin forecast, if the buying pressure persists, the Bitcoin price could jump another 7.8% and challenge a confluence of resistance at $76,000. This level stands as a pivot level for Bitcoin, as a potential reversal could intensify the selling pressure and resume the prevailing downtrend.
On the contrary, a breakout from this resistance could bolster the price for a sustainable recovery towards $85,000.
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