Bitcoin holds steady at $104K in the wake of Iran-Israel tensions and macroeconomic figures proving to be deceptive. The leading cryptocurrency was steadfast as altcoins lost two-digit percentages over the weekend.
Bitcoin Remains $104K Amid Regional Tensions
Bitcoin fell to around $103,000 due to Israel’s retaliatory strike on Iran and therefore the world witnessed market volatility. BTC also settled once more and was at support levels of around $104,500, closing the weekend below the week’s high. That price stability is the marker of Bitcoin turning into a semi-defensive asset amid geopolitical uncertainty.
The entire crypto market cap dropped on Friday to $3.22 trillion from $3.47 trillion. Despite that $250 billion drop, Bitcoin dominance moved slightly higher, which indicates its relative strength against altcoins.
Altcoins Face Deeper Losses as Volatility Hits an All-Time High
While Bitcoin was even, altcoins saw steep falls. Ethereum and Cardano fell 8% to 10%, challenging key levels of support. Other leading altcoins like Solana and Avalanche saw steep falls too.
Among the exception was Hyperliquid (HYPE), which also met firm technical support at $44. Despite overall market losses, HYPE was just 9% below its all-time high, which suggested potential investor appetite on dips in the market.
Poor liquidity and increased leverage were lambasted by market experts as the culprits behind those losses. Over $400 million worth of liquidations of long positions only managed to continue fueling sell-offs in lower liquidity altcoins.
Macroeconomic Tailwinds Counteract Risks
Apart from the prevailing tensions in the geopolitical arena, broader macroeconomic fundamentals also worked in favor of Bitcoin. US inflation data was solid, underpinning hopes for dovish Federal Reserve policy. Further, optimism over US-China trade talks boosted investor confidence into the middle of the week.
These explained Bitcoin’s 4% gain in the early part of the week. Spot Bitcoin exchange-traded funds also recorded more than $1 billion inflows in four days, which was a reflection of continued institutional demand.
Market analysts said all these were enough bullish pressures to save BTC from further losses despite weekend rumors.
Bitcoin Resistance and Support Levels Under the Spotlight
The extent of major support for Bitcoin is where the price significantly moved from $103K to $104K. Below this will be headed towards $100K. On the other hand, reclaiming $108K is critical before trying the all-time high of about $112K.
Technicals remain neutral with decelerating momentum but still above the major moving averages. Short-term consolidation will likely be the story unless extreme macro or geo-political events come into the scene.
Outlook: Cautious Optimism as the Markets Rebalance
While the crypto market had a rapid reaction to the Israel-Iran conflict, Bitcoin price action shows greater investor confidence in its long-term worth. Its steady performance amidst spectacular altcoin losses demonstrates its role as a relative haven of safety among digital currencies.
As global markets are in shambles, Bitcoin‘s grip above $104K will be the determiner of its next move. Prepare yourself to witness macroeconomic news reports, geopolitical news headlines, and ETF inflows serve as canaries in the next few days.
