After a series of sell-offs, Bitcoin is recovering, rebounding early in the week alongside risky assets on signs of de-escalation in the US-Israel war against Iran.
Markets took a breather after Trump's announcement of a postponement of strikes on Iran. However, the situation remains tense and the risks remain high, especially given that Tehran itself denied participating in negotiations with Washington.
The Bitcoin price rebounded from support near $67,300 and returned above the psychological $70,000 mark. It briefly approached $71,800, which capped the rally. On Tuesday, BTC is trading at $71,000, trying to determine its next direction. As shown by an analysis of the BTC/USD chart by Investing.com's WarrenAI smart chatbot, the daily chart signals a localized bullish breakout, but the current rally appears to be playing with fire.
The leading cryptocurrency managed to break out of its protracted range, consolidating above the Bollinger Bands and the Ichimoku Cloud. The MACD indicator also confidently turned up, confirming the strength of the short-term momentum.
Nevertheless, Bitcoin remains firmly in the grip of a bearish trend globally: the price is 23% below its 200-day moving average. This means that buyers are currently swimming against a strong current, and long-term selling pressure is still enormous.