Bitcoin is demonstrating impressive resilience as it hovers around the pivotal $90,000 threshold amid escalating geopolitical tensions. The ongoing conflict in the Middle East is impacting global markets, with BTC being viewed as a macro hedge. Interest from institutional players regarding ETF developments and the increasing volatility in risk-driven assets signal a shift in the market narrative.

Bitcoin Price Analysis: The Daily Chart

Recently, Bitcoin broke out of the descending trend line it was confined to for months. This occurred after a phase of accumulation near the $80,000 mark, leading to a robust jump into the $95,000 resistance area. However, after reaching this level, it was met with substantial rejection, resulting in several bearish daily candles.

The cryptocurrency is now expected to test the upper limit of the former channel, which may turn into support. The RSI has tempered from its previously overbought state and sits around 50, suggesting potential continuation if buyer enthusiasm resurfaces shortly. The asset’s price is also encountering resistance from the 100 and 200-day moving averages, which remain above the $95,000 level.

BTC Daily Chart

BTC/USDT 4-Hour Chart

In the 4-hour timeframe, Bitcoin formed a rising wedge pattern but faced rejection below the upper resistance near $95,000. Currently, it is approaching the $90,000 support zone. Should buyers uphold this level, a renewed attempt toward $95,000 could follow. Conversely, breaking the $90,000 psychological barrier may lead to a drop towards the bottom of the wedge, close to $88,000. The RSI’s sharp decline below 50 indicates a loss of momentum in the short term, rendering the outlook bearish until a pronounced rebound signals a resurgence of strength.

BTC 4H Chart

Sentiment Analysis

Current sentiment indicators present a mixed picture. The Coinbase Premium Index shows negative territory, revealing greater selling pressure from U.S. investors, indicating a lack of robust spot-driven demand at the current price levels. However, extreme fear is not prevalent, and the broader derivatives market remains stable, suggesting traders are maintaining their positions despite recent market corrections. If Bitcoin can sustain the $90,000 level, sentiment could shift rapidly, especially if ETF news turns positive or geopolitical tensions escalate further.

Sentiment Index

Important Notice

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