Bitcoin price held near $75,000 on Thursday, sustained by institutional inflows following increased peace hopes between the U.S. and Iran.

According to data from crypto.news, Bitcoin (BTC) price rose past the $75,000 psychological resistance level several times this week but failed to sustain above it. Trading at $74,921 at press time, the bellwether was still up 1.7% in the past 24 hours and 5.5% over the past week.

Bitcoin price rose as institutional investors shifted their attention back to the token. Data from SoSoValue show that the 12 spot Bitcoin exchange-traded funds drew in $597.50 million over the past two days amid hopes of peace between the U.S. and Iran after weeks of war that deteriorated investor appeal for risk assets, including cryptocurrencies.

Recent reports suggest that Pakistan has offered to hold the second round of peace talks in Islamabad to facilitate negotiations between the U.S. and Iran. This followed after Iran grew more willing to make a new and more comprehensive deal with the U.S. after the latter established a naval blockade in the Strait of Hormuz against ships moving in and out of Iran.

However, Iran noted that if the U.S. continues its naval blockade of Iranian ports, it would block trade in the Red Sea and the Gulf and Sea of Oman.

As these recent developments have bolstered hopes that the war between the two nations could finally settle down, markets have reacted positively. Notably, crude oil prices fell back below $100. West Texas Intermediate crude oil stood at $92, while Brent crude traded at $96.50.

As Bitcoin price rose, it squeezed several highly leveraged short traders. Data from CoinGlass shows nearly $152.2 million in shorts were liquidated in the past 24 hours, further fueling the upward momentum. 

It should also be noted that Bitcoin price often shares a high correlation with traditional tech stocks, which have moved higher today. Asian stocks such as Japan’s Nikkei 225 rose 2.3% today, while Hong Kong’s Hang Seng rose by 1.7%.

Bitcoin price analysis

On the 4-hour chart, Bitcoin price has formed an ascending parallel channel pattern since late last month. As long as Bitcoin remains within the pattern, it will continue to form higher highs and higher lows.

Technical indicators seem to show support for continued growth. Notably, the SuperTrend has flashed green, a sign that bulls remain dominant over the market at press time. Meanwhile, the MACD lines pointed upwards as they crossed into positive territory.

As such, Bitcoin could likely continue to move higher as more clarity over the situation between the U.S. and Iran is revealed.

On the contrary, a drop below $72,000, levels which have previously served as a pivot point, could invalidate the current bullish thesis and lead to a deeper correction.