Bitcoin price rebounded back above $81,000 as investor risk-on sentiment improved after Iran signalled that it was reviewing a U.S. proposal to end the war between the two nations.
After falling over 2.3% from a 4-month high of $82,751 on Wednesday to an intraday low of $80,771, Bitcoin (BTC) price rebounded back above $81,500 at press time.
The bellwether reclaimed the $81K figure as oil prices continued to drop for the third straight day, as the U.S. and Iran made more progress toward a peace deal currently “under review” that aims to bring a permanent end to the war between the two nations and ease disruptions at the Strait of Hormuz.
Reports indicate that Iran is mulling over the peace deal presented by the U.S. through Pakistani intermediaries and is expected to provide a formal response within the coming days. The one-page memorandum of understanding includes a comprehensive framework for a ceasefire and the restoration of trade routes. However, it excludes sensitive discussions surrounding Iran’s nuclear program, which would reportedly take place at a later date.
Despite the growing optimism, U.S. President Donald Trump clarified that a deal has not yet been finalized, adding that the U.S. would continue with its attacks on Iran if it fails to comply with the proposed terms.
Crude oil prices, which have largely been affecting global market sentiment since the war began, fell for a third straight day on Thursday, boosting investor confidence in riskier assets. Notably, WTI crude futures fell toward $93 per barrel while Brent oil had fallen 1% to $100.
Safe haven assets such as gold and silver have continued to show volatility as investors rotated capital away from traditional hedges and back into Bitcoin and other crypto assets. Gold price rose over 1.2% today, while silver gained nearly 4%.
The Coinbase premium fell to a negative reading, suggesting a slight cooling of demand from U.S. institutional buyers
Bitcoin price analysis
On the daily chart, Bitcoin price has been trading within an ascending parallel channel pattern ever since late March. It has formed higher highs and higher lows consistently over the past several weeks.
The Supertrend has continued to remain green, a sign that the overall bullish momentum is still firmly in control. At the same time, the MACD lines have formed a positive crossover, which means that buying pressure is increasing in the short term.
Hence, the path of least resistance for Bitcoin lies above the current levels with bulls eyeing the $84,000 to $85,000 range as the next major target. On the contrary, $80,000 remains the psychological floor that must hold to prevent a deeper correction.
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