Bitcoin price fell nearly 3% on Wednesday as investors booked profits following its sharp rally above $75,000 the previous day amid renewed hopes of U.S.-Iran peace talks.
Bitcoin’s price fell today as investors booked profits following the sharp rebound yesterday. It is quite common for investors to take some profits, especially when such a sharp upside occurs after days of intense volatility amid geopolitical conflict situations.
The risk-off sentiment is not confined to Bitcoin and cryptocurrencies alone, as traditional safe-haven assets such as gold and silver have also fallen a bit today after crude oil prices moved up again following the sharp drop under $100 yesterday.
According to data from crypto.news, Bitcoin (BTC) price fell 3% to an intraday low of $73,617 on Wednesday after paring off some of its gains from the previous day when the bellwether rose 7% to nearly $76,000.
The rebound occurred amid renewed hopes of a more concrete ceasefire in place between the U.S. and Iran after reports emerged that Iran was ready to negotiate new terms regarding its nuclear program and maritime conduct.
Most recently, U.S. President Donald Trump told Fox News that the war is “close to over” after he hinted at a second round of face-to-face talks with Iran in Islamabad in the next two days. However, with Pakistan’s prime minister out of the nation till April 18, the talks could face some delays.
The diplomatic push follows after the U.S. initiated a naval blockade at the Strait of Hormuz to halt economic trade on all seaborne cargo going into and out of Iran.
The Iranian government had previously called the move state-sanctioned piracy, while they themselves implemented a controversial toll system in the area, reportedly to recoup losses for nearly $270 billion in direct and indirect damages on the nation since the start of the US-Israel war on Feb. 28.
Bitcoin price analysis
Despite Bitcoin’s slight pullback today, its market structure continues to present a bullish bias for the coming sessions.
On the daily chart, Bitcoin’s price action has been forming an ascending triangle which is a bullish continuation pattern if the price breaks out above the resistance level. At press time, Bitcoin’s price action was hovering closer to the upper horizontal trendline of the pattern, which suggests that a decisive move by bulls could confirm the pattern.
Technical indicators further support this bullish outlook. Notably, the MACD lines have pointed upwards while the RSI bounced back from neutral threshold to 60, showing there is still room for further appreciation before hitting overbought territory.
Hence, the next key resistance for Bitcoin lies at $76,000. A break above the trendline could trigger a rally toward the $80,000 mark.
On the contrary, if Bitcoin price were to fall below $72,000, it could invalidate the current bullish setup and lead to a retest of support near $70,000.