Key takeaways
- Bitcoin (BTC), Ethereum (ETH), and XRP continued their recovery as geopolitical concerns eased.
- Market sentiment improved after US President Donald Trump said that Iran had reached out to discuss a possible agreement.
- Bitcoin has crossed the key resistance level of $64,000, and a breakout will likely boost the outlook in the short term.
Bitcoin (BTC) continued its recovery on Friday, rising above the $64,000 level as improving investor sentiment supported a broader recovery across the cryptocurrency market.
The recovery comes after geopolitical concerns receded following statements by US President Donald Trump, who said that Iran had contacted the United States to discuss a possible agreement.
These statements raised hopes for a decline in tensions in the Middle East, which encouraged investors to return to high-risk assets.
Positive sentiment also helped Ethereum (ETH) approach $1,800, while XRP stabilized after finding support near key technical levels.
Improving risk appetite supports Bitcoin recovery
Cryptocurrency markets gained ground as concerns surrounding the recent escalation in the Middle East began to subside.
Investor confidence improved after Trump indicated that Iran had begun contacts with the United States about possible negotiations, raising expectations that diplomatic efforts could help prevent further conflict.
The shift in market sentiment has led to renewed buying across digital assets, allowing Bitcoin to recover towards an important technical resistance area.
Bitcoin Price Analysis: Bulls target higher resistance levels
Bitcoin was trading at around $64,300 at the time of writing, putting it just below the important $65,000 resistance area.
Although the recent rebound has boosted short-term momentum, Bitcoin is still below several major trend indicators, suggesting that the broader market structure has not yet turned decisively to the upside.
Bitcoin continues to trade below the 50-day Exponential Moving Average (EMA) at $65,399, the 100-day EMA ($68,991), and the 200-day EMA ($75,024).
These moving averages form a strong upper resistance area that the bulls must overcome before a broader trend reversal is confirmed.
Technical indicators indicate that buying momentum is slowly returning. The Relative Strength Index (RSI) moved above the neutral 50 level, indicating strengthening bullish momentum after weeks of weakness.
Meanwhile, the Moving Average Convergence-Divergence (MACD) is still in the positive territory, with the MACD line remaining above zero and the histogram continuing to expand, indicating that the bullish momentum is gradually increasing.
While these indicators favor short-term buyers, they have not yet negated the broader bearish structure.
The first major resistance for Bitcoin is near the $64,686 horizontal level. A decisive daily close above this area would highlight the 50-day EMA at $65,399.
If buyers clear this hurdle, attention could shift towards the 100-day moving average at $68,991, followed by the 200-day moving average at $75,024.
After these levels, the next important long-term resistance is around $84,410.
On the downside, Bitcoin lacks a strong, nearby technical support area, leaving the market vulnerable to renewed selling pressure if the current recovery loses momentum.
In this scenario, traders will likely look to the psychological level of $60,000 as the next major area where buying interest could emerge.
For now, improving geopolitical sentiment has provided short-term support for Bitcoin, but the bulls will need to reclaim $64,000 and overcome the moving average resistance cluster to cement the case for a sustainable recovery.
