Bitcoin price jumps 2% after the US and Iran agreed to halt strikes over control of the Strait of Hormuz. However, top analysts remain cautious about an immediate recovery.
According to Axios, the agreement comes as peace talks resume in Qatar this week.
Why Bitcoin price jumps 2% despite analyst caution
Bitcoin price jumped from a 24-hour low of $58,856 to $60,089. The price currently trades at $59,970, with a 24% rise in trading volume. US stock futures are also rising following the announcement.
The conflict escalated after Iran targeted a container ship carrying Qatari oil. Consequently, the US government revealed retaliatory strikes on Iran after the market closed on Friday. This caused Iran to strike US military bases in Kuwait and Bahrain, escalating Middle East tensions.
Market participants noted that the announcement comes just one hour before US stock market futures are set to reopen. “Carbon copy headline every Sunday evening,” said zerohedge.
Analysts stay cautious amid technical weakness
Despite the positive news, analysts have remained cautious over immediate recovery. Several factors such as geopolitical, macro, and technical are keeping analysts on edge.
For example, popular analysts Cheds Trading and Benjamin Cowen noted that Bitcoin saw its lowest daily close since 2024. Additionally, it marked its first close below the 200-week moving average (200-WMA) since 2023. The US strikes came despite the US Senate passing the War Powers Act.
Rekt Capital predicts $61K as the key resistance. Bitcoin price has failed to surpass this level for the fourth consecutive day. “With the new Weekly, Monthly and Quarterly candle closes all just around the corner, it would be wise to wait to observe those first confirmations for additional insight,” he said.
Therefore, he recommends investors to wait for June’s monthly close. That would reveal levels where a potential July relief rally could start. Cheds Trading agreed with Rekt Capital on risks of further drop amid technical chart weakness.
Top analyst Markus Thielen revealed that their Bitcoin trend model turned bearish on May 22, when Bitcoin traded at $75,600. It has remained bearish despite buy-the-dip sentiment.