Was the weekend crash on Bitcoin an indicator of a comeback?
On Sunday, the cryptocurrency fell by more than 4 percent after the U.S. air strikes against the Iranian nuclear installations.
It fell to approximately $99,200 only to move upward.
Today, Bitcoin rebounded to about 101,766. Ether also recovered some of their lost positions and traded around the $2,237 mark.
The recovery is after oil shot up more than 4 percent due to concerns of disruption of supply via the Strait of Hormuz. The world markets are still nervous yet picking up.
Technically, Bitcoin was supported at the levels of 100K. There was a threat of a slip below of which analysts warned could test $92K. The resistance is at around $107K -112K and profit-taking could set in.
On-chain data shows that institutional investors are betting on the dip, but long-term holders are staying put.
As geopolitical flare-ups have settled down, attention shifts to the next triggers: Fed policy, oil prices and possible altcoin ETF approvals. Any of them can affect whether this recovery will be maintained.
The question investors are being confronted with is now, is it a temporary panic or the beginning of a more intense ascent?
