Hassan Maishera
TL;DR
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BTC, ETH, and XRP are in the red as the market remains bearish.
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The selloff could push Bitcoin to lower levels as the market sentiment remains mixed.
Mixed Signals in Crypto Market Amid Continued Geopolitical Tensions
The cryptocurrency market is showing mixed signals this Tuesday, with Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) losing momentum, while Zcash (ZEC) and SPX6900 (SPX) experience notable breakouts.
Market sentiment remains poor, largely influenced by geopolitical instability surrounding the ongoing war between the United States (US) and Israel versus Iran, as well as the broader macroeconomic uncertainty that follows.
Bitcoin is currently trading just below $69,000 after a failed attempt to break through the $70,000 mark on Monday. Ethereum is maintaining support around $2,100, while XRP has dipped below the $1.30 support level, marking its second consecutive day of decline.
The Middle East conflict continues to place pressure on global markets, with oil prices holding above $103 per barrel for West Texas Intermediate (WTI). US President Donald Trump has issued a stern warning to Iran, stating that military action could be taken against Iran’s energy infrastructure if the Strait of Hormuz, a vital shipping route controlling 20% of the world’s oil and gas supplies, is not reopened by the 8:00 PM Eastern Time deadline on Tuesday.
The crypto market has been grappling with weak sentiment since the conflict began in late February, with the Fear & Greed Index holding steady at 11 on Monday and Tuesday, signaling extreme fear.
While this is a slight improvement from the 10 recorded in March, the index remains well below its average of 14 last week, underscoring investor caution and reluctance to take on risk. This ongoing fear is curbing buying power and hindering upward price momentum across the market.
Bitcoin’s rally remains capped at $70k
Bitcoin (BTC) is trading below $69,000 with support at $68,000 holding. Despite the recent highs above $70,000, the near-term bias is mildly bullish after the coin reclaimed ground above the mid-60,000s.
The Moving Average Convergence Divergence (MACD) indicator on the 4-hour chart remains above the zero line, while the RSI of 60 indicates a growing bullish momentum.
If the selloff persists, Bitcoin's immediate support emerges near $68,000. Failure to defend this level would result in a deeper pullback towards the $65,000 support level, where prior dips found demand.
However, if the bulls resume the upward trend, initial resistance stands near $70,000, ahead of the $71,000 area, both levels having capped advances over the past sessions.
If the daily candle closes above $71,000, it would pave the way for an extended rally toward the $72,800–$74,900 band, where previous selling pressure emerged.
