Bitcoin bounces back from Binance hack selloff as US-Iran hopes lift sentiment

Bitcoin suffered a sharp decline late last week following news of the security breach at Binance, which reportedly saw roughly $6.3 billion drained from multiple wallets. The heist, called the biggest cryptocurrency theft ever, sparked worries about exchange security and the potential for knock-on effects throughout the wider digital asset ecosystem.

Even though Binance said it would make customers whole, the uncertainty over the stolen funds and the risk of further liquidations hung heavily over market mood. Leveraged positions worth about $1.53 billion were wiped out in a 24-hour span, worsening the initial drop as forced selling compounded the downturn.

Still, Bitcoin managed to recover as anxieties over the hack started to fade. Binance's pledge to reimburse victims helped stem fears of a wider crisis, while brighter prospects for US-Iran talks gave the crypto market an extra lift. Tehran's offer to reopen the Strait of Hormuz within two days boosted expectations of a diplomatic resolution, taking some of the geopolitical risk premium off the table and helping oil prices give back most of last week's gains.

The larger macroeconomic picture, however, stays difficult, with inflation worries, growth concerns, Fed tightening and geopolitical tensions all capping any rally. A breakthrough in US-Iran diplomacy or a dovish turn from the Federal Reserve would likely be needed to shift the current bearish bias. A surprising red wave in the US midterms might also aid cryptocurrencies if markets start pricing in tighter fiscal policy. Conversely, a blue sweep could add more pressure on crypto unless the Iran conflict finds a resolution.

Bitcoin Technical Analysis – Daily Timeframe

Looking at the daily chart, Bitcoin is slowly bouncing back from the selloff set off by the Binance breach. A descending trendline is now marking the bearish structure. If price reaches that level, sellers are likely to step in with a clearly defined risk above the line, positioning for a fall toward 75,000. Buyers, meanwhile, would prefer to see a decisive break higher to build positions for a climb to 98,000.

Bitcoin Technical Analysis – 4 Hour Timeframe

The 4-hour chart offers little additional insight, as sellers have a better risk-to-reward setup near the descending trendline, while buyers must await either a move above that line or a dip to the 75,000 area.

Bitcoin Technical Analysis – 1 Hour Timeframe

On the 1-hour chart, an ascending trendline is guiding the current pullback. Buyers are likely to defend that line, with a defined risk beneath it, to press toward fresh highs. Sellers, on the other hand, will be watching for a break lower to join in for a move down to 75,000. The red lines mark today's average daily range.

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