Bitcoin Price Pulls Back To $72,500 Can BTC Maintain $70K Support Amid US-Iran Tensions?

(MENAFN- AsiaNet News)

Analysts are divided on whether Bitcoin has hit bottom after the cryptocurrency rallied to nearly $74,000 over the last 24 hours.

Crypto analyst Caleb Franzen warned that BTC’s price is still below the short-term holder realized price, which is rare during uptrends.

Analysts attribute the current Bitcoin rally to ETF inflows and short-covering.

Bitcoin’s (BTC) price fell to around $72,500 on Thursday morning, paring gains after nearly touching $74,000, leaving analysts divided on whether the apex cryptocurrency can continue to rally amid U.S.-Iran tensions.

According to crypto analyst Ted Pillows, as long as Bitcoin’s price holds above $70,000, there’s a“decent chance” of another rally. However, analyst Caleb Franzen warned that BTC’s price is still below the short-term holder realized price (STHRP), which is rare during uptrends.

Source:@CalebFranzen/X

Bitcoin’s price was trading at around $72,500 on Thursday morning, clocking gains of around 1.4% in the last 24 hours. BTC remains more than 40% below its October peak of over $126,000. On Stocktwits, retail sentiment around Bitcoin rose to ‘extremely bullish’ from ‘bullish’ territory over the past day.

BTC retail sentiment and message volume on March 5 as of 5:25 a.m. ET | Source: Stocktwits

What’s Driving Bitcoin’s Rally?

According to XWIN Research Japan, the rebound in Bitcoin’s price following the U.S.-Iran war shock was driven by ETF inflows and short-covering.“In early March, several hundred million dollars entered these funds, directly supporting spot demand,” the firm said in a note on CryptoQuant.“On March 4 alone, inflows surpassed $200 million, highlighting renewed institutional participation.”

XWIN also noted that open interest rose sharply while funding rates turned negative, indicating a short squeeze.“As prices increased, short liquidations triggered waves of short covering that amplified the rally,” it wrote.

Data from SoSoValue showed $225.15 million flowed into spot Bitcoin ETFs on Wednesday. Weekly total inflows are on track to end the week with net gains after a run of consecutive outflows broke last week. Analysts agree that geopolitical uncertainty remains a key factor in Bitcoin’s price, as tensions between the U.S. and Iran continue to play out.

**Read also: **Dogecoin, Ethereum Outperform Bitcoin After $600 Million Liquidation Wave Hits Crypto Market

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