Bitcoin Reverses Course After NFP, Attention Remains on US-Iran Talks

Fundamental Context

Bitcoin failed to build on its gains on Friday, ending the day in negative territory even after a weaker-than-expected NFP release.

No specific bearish catalyst drove the decline; rather, the NFP report carried little weight in the broader context as US economic data overall stays robust and talks between the US and Iran remain deadlocked.

Bitcoin recouped Friday's losses over the weekend and is now back to where it was before the NFP release. With a sparse economic calendar this week, attention is expected to stay on US-Iran developments.

A diplomatic breakthrough would likely cause oil prices to fall sharply, boosting Bitcoin via reduced rate hike expectations and improved risk appetite. Conversely, further escalation would probably push crude oil up and pressure the cryptocurrency market.

Bitcoin Technical View – Daily Chart

Bitcoin is currently trading close to its monthly highs. Should the price retrace to the trendline, buyers are expected to support it there, with a clear risk level below, aiming for a rally to 98,000. Sellers, in contrast, would look for a break beneath the trendline and the 82,500 support to enter positions targeting a correction to 76,000.

Bitcoin Technical View – 4-Hour Chart

The recent price action has been rangebound. Bitcoin briefly broke above the minor resistance at 85,000 on Friday but then fell back below it, only to recover. This choppy movement calls for caution; buyers may wait for a break above the monthly high or a pullback to the rising trendline before positioning for a move to 98,000. Sellers, meanwhile, require a break beneath the trendline and the 82,500 support to pave the way for fresh lows.

Bitcoin Technical View – 1-Hour Chart

A minor upward trendline is defining the current bullish momentum. Buyers are likely to continue relying on it, with a defined risk below, to drive prices to new highs. Sellers will look for a break below to position for a pullback to the major upward trendline.

Upcoming Events

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