Bitcoin has shown impressive performance compared to gold, silver, and major US equity indexes since the US-Israeli attack on Iran began. Despite oil prices exceeding $100 a barrel and reduced expectations for Federal Reserve easing, Bitcoin has surged past $72,000. According to data from CryptoSlate, Bitcoin has increased by 7.3% since the conflict began, reaching a one-month high of over $73,000 before retracting to around $72,200.
During the same period, gold dropped to $5,091, silver fell over 10% to $82, and the S&P 500 and Nasdaq were down by 1% to 2%. This scorecard places Bitcoin ahead of traditional benchmarks, despite facing macroeconomic headwinds that typically impact digital assets negatively.
The rise in Bitcoin’s price came after an initial selloff following the outbreak of war, with the flagship digital asset recovering strongly into the second week of March. This rebound put Bitcoin ahead of gold, silver, and major US stock indexes, even as oil prices soared and market expectations shifted.
The market has seen increased interest in Bitcoin exchange-traded funds, with significant inflows recorded during this period of geopolitical uncertainty. Additionally, open interest in Bitcoin has risen, indicating renewed participation in the market without reaching extreme levels.
While the rebound in Bitcoin’s price has been impressive, some analysts still view the market as bearish. Data from CryptoQuant suggests growing market disbelief, with traders cautious amid unresolved tensions in global oil trade. Funding rates on exchanges like Binance have remained negative, signaling a bearish sentiment among traders.
Despite the skepticism, Bitcoin’s short-term structure remains range-bound, with significant resistance levels around $72,000 to $74,000 and strong support levels around $70,500 to $71,000. The market is currently trading between whale supply above and robust bid support below, with potential for further upside if buyers absorb the sell walls above $72,000. However, a failure to break through resistance could lead to a pullback towards support levels around $69,000.
