Bitcoin holds support above $70K as geopolitical tensions weigh on market sentiment
Key receivers
BTC is down 1% in the last 24 hours and is now trading below $71,000.
Ongoing geopolitical tensions and inflation concerns continue to weigh on sentiment in the market.
Bitcoin (BTC) will start the week on shaky ground, hovering near the crucial $70,700 support level on Monday. A critical break below this zone could open the door for a broader correction.
Geopolitical tensions threaten food demand
A major factor behind its poor performance is the geopolitical tension between the United States and Iran.
Efforts to reach a settlement between the United States and Iran have ended in vain after Pakistan failed to reach a ceasefire agreement. US Vice President J.D. Vance described the proposal as a last-ditch offer that Iran rejected, citing excessive demands by state media.
In addition, US President Donald Trump has threatened to derail the fragile ceasefire by announcing plans to close the naval base off the coast of Hormuz. At the same time, Israel's military activity in Lebanon has increased the risk of regional escalation.
Macroeconomic pressures are also limiting Bitcoin's upside. Fresh data from the US Bureau of Labor Statistics showed that inflation is slowing sharply.The Consumer Price Index rose 0.9% in March – the fastest monthly increase in four years. Annual inflation rose to 3.3 percent, up from 2.4 percent in February.
The data led investors to lower expectations for a rate cut by the Federal Reserve, reinforcing a more bearish outlook.
Institutional demand provided some support last week despite current market conditions. Data from SoSoSoValue shows Bitcoin ETFs posted $786.31 million in revenue, building on last week's modest gains.
If institutional earnings increase, it could help stabilize prices and restore them in the near term.
Bitcoin Price Outlook: BTC is approaching a critical support level
BTC/USD's 4-hour chart is bearish and bearish as Bitcoin approaches critical support levels.
Bitcoin recently found support at its 200-week exponential moving average around $68,100 and posted modest weekly gains. As of Monday, BTC is trading above $70,700.
If bullish momentum builds, Bitcoin could target a move towards $74,500, marking the 2025 yearly low. Indicators are pointing to early signs of stabilization, with the Relative Strength Index trending higher and the MACD signaling a bullish crossover on the weekly chart.
However, Bitcoin continues to face resistance from key moving averages, including the 50-day, 100-day and 200-day levels.
If the daily candle closes near the 50-day EMA at $70,700, it could open the way to $72,500 and above.
On the downside, failure to hold this level could see BTC slide towards the $65,800 support zone.
