Despite geopolitical tensions and macroeconomic uncertainties, Bitcoin (BTC) holds above its 200-week trend line. Analysts predict further relief for bulls in the coming week.
Bitcoin has maintained a key long-term trend line as support over three weeks, with prices hovering around $64,343 at press time. This resilience is attributed to heightened tensions between the U.S. and Iran, which have driven oil prices to five-week highs ahead of crucial corporate earnings reports.
Traders are increasingly optimistic about short-term prospects, with one trader predicting further relief towards $65-67k this week. Analysts from Daan Crypto Trades noted that BTC/USD has consecutively closed above the 200-week simple moving average (SMA) for three weeks, currently at $63,322.
While bullish sentiment remains strong, seasonality factors suggest a bear market phase may continue into next year. Rekt Capital highlighted that Bitcoin is halfway through its second year in the current four-year cycle and predicted 2027 to be the bottoming out period before another bull run.
Geopolitical risks have surged with Iran’s foreign minister warning of nuclear disputes, leading U.S. President Trump to call for sanctions against Iran. These events sent oil prices higher, reaching five-week highs above $80 per barrel on WTI crude and topping $90 on Brent crude.
The macroeconomic backdrop is further complicated by upcoming corporate earnings reports from major tech companies like Tesla, Alphabet, and Intel. However, the Federal Reserve remains conservative with a 25 basis point interest rate hike expected in September.
Despite these positive signals for Bitcoin’s short-term prospects, spot market demand has retreated somewhat since early July despite ETF inflows. The Puell Multiple, which measures mining profitability, is on an upward trajectory but analysts remain cautious about calling it a generational low.
Traders should watch the coming week closely as geopolitical tensions and corporate earnings reports could drive significant volatility in risk assets. Analysts predict further support for Bitcoin bulls if prices can push higher to retrace recent losses.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.