Bitcoin price approaches the previously broken lower consolidation boundary, rejection suggests a downside target below $60,000.
US-listed spot ETFs attracted over $257 million on Tuesday, the largest single-day inflow since February 6.
Tensions between the US and Iran ahead of the third round of nuclear talks on Thursday could bring fresh volatility toward BTC.
Bitcoin (BTC) is attempting a cautious recovery as it approaches the previously broken lower consolidation boundary around $66,000 at the time of writing on Thursday. Institutional demand shows mild signs of recovery, as spot Bitcoin Exchange Traded Funds (ETFs) recorded inflows on Tuesday. Meanwhile, rising geopolitical tensions between the US and Iran ahead of renewed nuclear talks on Thursday could trigger volatility for the Crypto King.
Bitcoin optimism soars in tandem with Trump’s speech
Bitcoin price recovers slightly, trading above $65,000 during the early European trading session on Wednesday. The Santiment chart below shows that the social commentary across X, Reddit, Telegram, and other platforms reaches the highest ratio of bullish vs. bearish comments in 4 weeks following President Trump’s State of the Union speech.
The analyst noted, “If retail Fear of missing out (FOMO) remains high, and there’s a consensus that ‘the bear cycle is ending, this can halt rallies due to the crowd’s consistent history of getting crypto’s price moves wrong."
BTC positive and negative sentiment ratio chart. Source: Santiment
Tensions between the US and Iran cap Bitcoin recovery
Market participants are closely monitoring developments surrounding US-Iran tensions ahead of nuclear talks in Geneva on Thursday. The US embassy in Lebanon on Monday evacuated “dozens of its staff members” as a precaution amid anticipated regional developments, keeping a lid on risk-on sentiment.
Moreover, any signs of rising tensions between the US and Iran could further dampen the risk sentiment, prompting investors to move towards safe-haven assets such as Gold (XAU), while weighing on Bitcoin.
Bitcoin optimism soars in tandem with Trump’s speech
Bitcoin price recovers slightly, trading above $65,000 during the early European trading session on Wednesday. The Santiment chart below shows that the social commentary across X, Reddit, Telegram, and other platforms reaches the highest ratio of bullish vs. bearish comments in 4 weeks following President Trump’s State of the Union speech.
