The cryptocurrency market is trading in the green on Wednesday following a bearish start to the week.
Bitcoin, the leading cryptocurrency by market cap, is trading above $68,500 per coin after rebounding from a key technical level earlier this week.
The positive performance comes amid rising institutional inflow into spot Bitcoin Exchange-traded Funds (ETFs) and the easing of tensions in the Middle East war.
Easing war tension boosts BTC’s price above $68,000
Bitcoin has added 3% to its value in the last 24 hours, briefly hitting the $69,300 level earlier today.
It has slightly retraced and now trades above $68,600 per coin, as per data from various crypto trading platforms.
The positive performance comes as sentiment around the US-Iran war continues to improve.
Iran’s President Masoud Pezeshkian told European Union (EU) Council President António Costa on Tuesday that his country is ready to end the war with the United States.
However, the president added that Iran needs certain guarantees, especially no repetition of aggression.
His speech came shortly after US President Donald Trump announced that the US is willing to end the war with Iran despite the Strait of Hormuz remaining closed, as Washington doesn’t intend to stretch the military mission beyond his timeline of four to six weeks.
Trump added that he intends to pursue a diplomatic way to reopen waterways.
The easing of tension in the region has boosted risk-on sentiment, with risk-sensitive assets such as Bitcoin gaining further ground.
In addition to that, institutional demand for Bitcoin is showing mild signs of a comeback.
According to CoinGlass, Bitcoin spot ETFs recorded an inflow of $117.63 million on Tuesday, marking the second consecutive day of positive flows this week.
If these inflows continue and intensify, BTC could see a further rally ahead.
Furthermore, the monthly chart shows that ETF inflows in March totalled $1.32 billion, breaking four consecutive months of withdrawals.
This indicates that institutional demand is resuming in the market.
Bitcoin’s price lost 24% of its value in the first quarter of 2026, its worst Q1 performance since 2018.
However, market analysts are optimistic that Bitcoin’s performance could improve in the near term, thanks to improved sentiments and inflows into Bitcoin-related funds.
Bitcoin price forecast: BTC eyes the $72k resistance level
The BTC/USD 4-hour chart remains bearish and efficient as Bitcoin has been trading below its 4-hour Inducement Liquidity (ILQ) of $76,000 since February 3.
Currently, Bitcoin is facing rejection around the $69,300 resistance level, indicating that the near-term bias remains mildly bearish.
If the bulls push higher, Bitcoin could encounter its first major resistance at $71,000, coinciding with its 50-day Exponential Moving Average (EMA).
Momentum readings stay soft, with the Relative Strength Index (RSI) on the 4-hour chart at 58, just above the 50 line and reflecting subdued upside momentum.
In contrast, the Moving Average Convergence Divergence (MACD) indicator remains below zero, suggesting fading but still dominant selling pressure.
If the rally persists and Bitcoin surpasses its 50-day EMA, the recent supply zone at $72,600 could present a major challenge for the bulls.
A daily close above this zone would be needed to challenge the 100-day EMA around $76,600 next.
However, if the sellers regain control and Bitcoin drops to the $65,900 support level, it could break below recent lows.
A break below this level would expose follow-through toward the next downside attraction around $64,000.
As long as Bitcoin is trading below the $72,600 resistance level, rallies would remain vulnerable to selling pressure, keeping the near-term bias tilted towards the downside.