BTC Bouncing Back?

Bitcoin prices have managed to hold onto support around the $60k-mark following several tests of the level recently. Price is currently trading around $64k having settled into a period of consolidation around the YTD lows. The uptick in hostilities between the US and Iran this week has so far not damaged BTC sentiment and with oil prices cooling ahead of the weekend, risk appetite is rebounding here suggesting that BTC could have room to push higher near-term.

US/Iran Impact

Continued talks between the US and Iran seem to be helping offset concerns around the fresh military exchanges this week with traders seemingly taking the view that while talks continue, the attacks are just noise and the focus remains on securing a peace deal. Any positive headline over the weekend, such as both sides stepping down from further attacks, or a reaffirmation of the peace process should help further lift risk sentiment and BTC accordingly.

Institutional Demand

Indeed, industry data this week show that BTC flows have turned net positive again now for July following a run of institutional buying recently. This run of buying corroborates the consolidative price action we’ve seen this month and suggests that BTC could be building a base for a fresh reversal higher near-term.

Technical Views

BTC

Price is now holding above the $62,470 level and look poised for a fresh challenge on $65,380. With momentum studies turning higher, focus is on a breakout here and a return to $69,605 next. To the downside $60k is the key marker to note which, if broken, will turn the outlook sharply bearish.