Key facts
- Bitcoin price increased by 2% following news of a US-Iran strike suspension.
- Analysts, including Rekt Capital and Markus Thielen, expressed caution about immediate market recovery.
- Technical indicators show weakness, with Bitcoin closing below its 200-week moving average.
- Key resistance for Bitcoin is identified at $61,000.
- Peace talks between the US and Iran are reportedly resuming in Qatar.
Bitcoin experienced a modest price increase, rising 2% to trade around $59,856, following reports that the United States and Iran have agreed to suspend strikes and resume peace talks in Qatar. This development follows a period of escalated Middle East tensions, including Iran targeting a container ship and subsequent US retaliatory strikes.
Despite the positive news for risk assets, several prominent analysts have expressed caution regarding an immediate recovery in Bitcoin and the broader cryptocurrency market. Factors contributing to this cautious outlook include geopolitical uncertainties, macroeconomic conditions, and technical weaknesses observed in Bitcoin's price action. Analysts like Benjamin Cowen and Cheds Trading highlighted that Bitcoin recently recorded its lowest daily close of the year and its first close below the 200-week moving average since 2023.
Furthermore, Bitcoin has struggled to surpass the key resistance level of $61,000 for four consecutive days. Rekt Capital advised investors to await the monthly close for June to gauge potential levels for a July relief rally. Markus Thielen of 10x Research noted that their Bitcoin trend model turned bearish on May 22, when Bitcoin was trading at $75,600, and has remained so despite some buy-the-dip sentiment.