As Bitcoin approached the $79,000 mark before Sunday’s weekly close, the cryptocurrency market felt the ripple effects of escalating tensions between the US and Iran. Moving under the shadow of geopolitical risk in recent weeks, Bitcoin managed to recover losses from earlier in the week as the close neared, demonstrating notable resilience.
Three-Month High at Weekly Close
According to data from TradingView, the BTC/USD pair regained value heading into the weekly close, with a potential to mark the highest weekly closing price in the past three months. Analysts noted that if Bitcoin managed to hold above $78,670 at the weekend, this would register as the strongest weekly close since late January. Maintaining this level could put the medium-term target of $80,000 and beyond back on the table.
Especially on Friday, optimism over a potential peace agreement between the US and Iran triggered strong buying activity in both Bitcoin and other risk assets. However, by Sunday, US President Donald Trump took to social media to express skepticism over the latest proposals from Iran.
Donald Trump wrote in his post: “I can’t even imagine that this could be acceptable.”
What Are Market Analysts Saying?
Michaël van de Poppe, a prominent voice in the cryptocurrency community known for his market analysis, drew attention to Bitcoin’s recent consolidation phase. Highlighting that US spot Bitcoin ETFs saw a total inflow of $630 million on Friday, van de Poppe commented,
We’re seeing strong consolidation, which on Friday hinted at upcoming moves. I don’t expect this trend to slow down in the near term, so we may see shallow consolidation continue.
On the other hand, some analysts warned that despite high volumes and new positions opening in the market, the upward price action might represent a short-term liquidity grab, followed by a sharp correction. An investor known as Crypto Tony predicted, “With liquidity being taken above, I expect a move down to follow.” The JDK Analysis account also assessed that the current liquidity structure resembles that of a typical bear market.
Significance of Liquidity Movements
Some traders have pointed out that an influx of new long positions in the futures market, coupled with aggressive buying, has not yet resulted in a clear upward breakout—potentially a sign of absorption in the market. If this situation persists, a wave of selling pressure could emerge after an initial uptick in the short run.
In summary, as Bitcoin moved close to $79,000 ahead of the weekly close, increasing risk appetite and both geopolitical developments and liquidity trends in the futures market remain key factors influencing price behavior.
