Bitcoin Price News: Iran War Pushes BTC Higher with $71K Resistance in Sight

Bitcoin (BTC) dropped by 0.6% in the past 24 hours, below $66,000, but experienced a strong jump during the weekend as the U.S. and Israel killed the Supreme Leader of Iran and bombarded most of the country.

War drums tend to be bullish for safe-haven assets. Although Bitcoin has not reacted as such lately, investors may turn to it if things get worse.

Last week, net inflows to exchange-traded funds (ETFs) linked to BTC swung to positive territory as they closed at $787 million. This marks a significant shift from previous weeks and could be an early indication that investors’ sentiment is shifting.

The Fear and Greed Index has been recovering lately, moving from a record low of 5 to 15 at the time of writing. Although investors are still in extreme fear, BTC’s ongoing consolidation between $60,000 and $70,000 shows that sellers have taken a breather for the time being.

BTC Eyes Rebound to $71K as Conflict with Iran Intensifies

On February 28, BTC hit a low of $63,000 and quickly bounced off that mark to around $68,000. Trading volumes increased significantly last week, jumping from $240 billion the week before to $334 billion for a 39% uptick.

This might point to an ongoing phase of accumulation as the token has been bouncing up and down between the two levels mentioned earlier.

Looking at the 4-hour chart, we can see how this consolidation has played out. Right now, it seems highly likely that the market will retest the $71,000 level to check sellers’ activity at this level.

If the selling pressure is now weaker, buyers might take advantage of the “Iran war” narrative to push the price of BTC higher. This could trigger a short squeeze at a point when the crypto market could be heavily one-sided toward the bearish end.

Meanwhile, a move above $71,000 may prompt some short-covering to push BTC to higher levels, possibly eyeing $76K first and then $85,000 if positive momentum accelerates.

The Relative Strength Index (RSI) confirms this ongoing consolidation as the oscillator has stalled at the mid-line. If we get a jump above 60, this would be a clear indication that bulls are on the move.

Paired with above-average volumes and a spike in long liquidations, this could provide a strong buy signal that could even anticipate the end of this bear market on the back of an unstable macro backdrop.

Second “Buy” Signal in the Hourly Chart Could Finally Yield Its Full Potential

Heading to the hourly chart, we got a buy signal on Saturday as BTC bounced off a key high time frame (HFT) support. This buy signal is still in positive territory and could yield a 2.5x gain if BTC hits our short-term target of $71,000.

A previous buy signal failed to push the top crypto to this target, but it managed to hit the first take-profit target, yielding 1.5x. However, it resulted in a minor gain as the rest of the open position broke even.

Could this time be the charm? The American session could set the tone for the week as the market digests the latest events in the Middle East. Another “buy” signal in the hourly chart once the bell rights could seal the deal for BTC.