Bitcoin stabilizes near $78K on Thursday. The price held steady at around $77,960 after touching an intraday high of $78,180.
Why the recovery? Geopolitical tensions eased. ETF outflows slowed. Technical indicators also improved.
How Bitcoin stabilizes near $78K amid easing Iran tensions
President Trump suggested that negotiations with Iran could soon reach their final stage. As a result, markets reacted positively. A successful agreement could restore smooth commercial shipping through the Strait of Hormuz. Disruptions there since March have fueled concerns over global energy supplies.
Iran on Thursday said it is reviewing the Trump administration’s latest proposal for bringing an end to the war after the U.S. president said he was prepared to wait a few more days to “get the right answers” from Tehran.
Consequently, WTI crude futures traded above $99 per barrel but remained well below the previous session’s highs. Oil had surged earlier on fears of escalating maritime conflict. Now, those fears are fading.
Bitcoin and other risk assets remain highly sensitive to oil prices. Elevated energy costs could complicate the Fed’s inflation outlook and delay rate cuts.
ETF outflows slow, SpaceX reveals large BTC holdings
Another positive signal came from the US spot Bitcoin ETF market. Net outflows slowed sharply to $70 million on Wednesday. For comparison, investors withdrew $648 million on Monday and $331 million on Tuesday. This suggests institutional selling pressure may be cooling.
Meanwhile, SpaceX disclosed holding 18,712 Bitcoin in its latest SEC filing. That is substantially larger than earlier estimates of 8,285 BTC. SpaceX now holds more Bitcoin than Tesla. The company is reportedly preparing for a Nasdaq listing in June, with a valuation between $1.75 trillion and $2 trillion.
Double bottom pattern points toward a breakout
Bitcoin’s weekly chart shows a clear double bottom pattern. The support area near $64,000 to $66,000 held twice between February and April. The neckline resistance sits near the psychological $80,000 level.
From a technical perspective, double bottom formations are bullish reversal patterns. They signal weakening bearish momentum after failed attempts to break lower.
Momentum indicators now favor bulls. The Aroon Up indicator climbed to 85.71%, while the Aroon Down dropped to 14.29%. This reflects strengthening upward momentum.
Bitcoin also trades above its Supertrend support near $75,560. It remains above the 50‑day and 100‑day moving averages at $76,226 and $72,455. However, the 200‑day moving average near $80,973 acts as major overhead resistance.
If bulls reclaim the $80,000 neckline, classical breakout projections target the $92,000 to $95,000 region.
Key liquidation levels to watch
Derivatives positioning suggests volatility may intensify. According to CoinGlass, major short liquidation zones sit between $78,000 and $81,000. If Bitcoin breaks into that range, forced short covering could accelerate the rally.
Source : Coinglass
Analyst Ted Pillows noted: “There’s a good chunk of liquidity sitting around the $78,000 – $81,000 level.” However, a huge liquidity cluster remains below $76,800. Losing that support could trigger downside volatility.
For now, bulls appear encouraged by easing ETF outflows, improving technicals, and SpaceX’s disclosure. All eyes are on the $80,000 neckline.
