Bitcoin falls 1.54% due to the Middle East crisis

Closing at $82,715, Bitcoin shows resilience in the face of geopolitical uncertainty and caution ahead of the Fed meeting. Bitcoin ETFs See Positive Flows: Is This the Start of a Recovery?

The price of Bitcoin fell 1.54% this Tuesday, hitting a low of $81,134, amid geopolitical tensions in the Middle East and anticipation of the Federal Reserve (FED) meeting. However, the cryptocurrency managed to partially recover, closing at $82,715, following the announcement of an agreement between the US and Russia to halt attacks on Ukraine. Additionally, Bitcoin ETFs saw positive flows of $156.5 million, the highest in 10 sessions, suggesting a shift in institutional sentiment.

The price of Bitcoin remains below the 200-period exponential moving average (EMA200), located at $85,500, confirming long-term bearish sentiment / Tradingview

Geopolitical Crisis and Its Impact on Bitcoin

This Tuesday, the price of Bitcoin experienced a 1.54% decline, falling to $81,134, amid global uncertainty. The Israeli bombings in Gaza and the US attacks in Yemen generated fears in the markets, which was reflected in a Increased volatility in the cryptocurrency market. However, the announcement of an agreement between the US and Russia to halt attacks on Ukraine for 30 days allowed Bitcoin to recover some of its lost ground, closing at $82,715.

The Fed and Its Influence on the Market

Investors also remained cautious ahead of the Federal Reserve (FED) meeting, which will announce new interest rates this Wednesday. Although no immediate rate cut is expected, markets will be attentive to Chairman Jerome Powell's speech for signs of possible future rate cuts. This uncertainty keeps Bitcoin in a tight range, with key resistance at $85,000.

Recovery in Bitcoin ETFs

According to data from CheckonChain, Bitcoin ETFs recorded a positive inflow of $156.5 million on March 17, the highest in the last 10 sessions. This increase in institutional demand suggests a shift in market sentiment, supported by an ETF Cost Basis of $70,840, indicating that investors are in a profitable position. Furthermore, cumulative flows reached $35.86 billion, ending a bearish streak.

Short-Term Consolidation

The Bitcoin price remains below the 200-period exponential moving average (EMA200), located at $85,500, confirming long-term bearish sentiment. However, the low trading volume and the imbalance between buyers and sellers (with a total spot volume of $7.18 billion) suggest that the market is in a consolidation phase. The CVD (Cumulative Volume Delta) of $28.80 million indicates slight upward pressure, but insufficient for a significant move.

Despite the volatility generated by the geopolitical crisis and uncertainty surrounding the Fed, Bitcoin is showing resilience, closing at $82,715. Positive flows into ETFs and the US-Russia agreement brought some optimism to the market. However, key resistance at $85,000 and low volume suggest that consolidation will continue in the short term. Investors should monitor the Fed's next moves and geopolitical developments to identify opportunities in the crypto market.

Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Please do your research and consult a professional before making financial decisions.