Bitcoin price has held the $105k support on Tuesday, with equity markets stealing the show on the back of reduced geopolitical temperatures in the Middle East. The coin was at $105,399 at the time of writing, down by 0.05% on the daily chart. The momentum underlying the BTUSD pair is bullish-leaning, with the RSI at 51 and the action above the Volume Weighted Moving Average (VWMA) level.
US President Donald Trump’s announcement of an imminent ceasefire between Israel and Iran has boosted investor confidence in equities to the disadvantage of cryptocurrencies. The FTSE Index was up by 0.16% , Germany’s DAX 40 gained 1.9%, Japan’s Nikkei closed at +1.1% and Hong Kong’s Hang Seng Index went up by 2%. That signals the rechanneling of funds to equities, limiting near-term gains by Bitcoin and other cryptocurrencies.
Nonetheless, institutional interest in Bitcoin remains strong, with US-traded Bitcoin spot ETFs recording $350 million worth of net inflows on Monday. In addition, exchange flows declined from +$199.7 million on Sunday to -$247.96 on Monday, pointing to declining selling pressure. However, Bitcoin price upside will likely face headwinds from the 1.47% drop in Open Interest contracts in the last 24 hours. That shows investors are taming their appetite for the coin, which could invite sellers to take control in the near-term.
Bitcoin Price Prediction
The momentum on Bitcoin price favours the buyers to be in control if action stays above $104,730. That will likely result in upward movement to find initial resistance at $106,010. However, a stronger momentum will break above that level and could test the second resistance at $107,200.
Conversely, action below $104,730 will shift the momentum to the downside. That is likely to see the first support established at $103,735. Breaking below that level will invalidate the upside narrative. Also, an extended control by the sellers could extend losses to test the second resistance at $102,600.
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