Bitcoin Bounces Back to Pass $71,000 Despite Tense Macro Mood

BTC price upside returned during Wednesday’s Asia trading session as Bitcoin attacked a long-term trend line and psychological levels.

Bitcoin (BTC) passed $71,000 on Wednesday as geopolitical tensions fueled ongoing volatility.

Key points:

• Bitcoin price action teases a fresh breakout after failing to hold $70,000 since January.

• Analysis sees the end of a large “accumulation phase” now in play.

• Geopolitical nerves stay focused on oil and the Strait of Hormuz embargo.

Bitcoin suddenly jumps 5% after tense February

Data from TradingView confirmed 5% BTC price gains on the day, taking BTC/USD to its highest levels in almost a month.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

Strength suddenly entered during the Asia trading session, with price crossing key trend lines including the 200-week exponential moving average (EMA) and old 2021 all-time high at $69,000.

BTC/USD one-day chart with 200-week EMA. Source: Cointelegraph/TradingView

Commenting, Lars Kooistra, known as The Composite Trader on YouTube, eyed the culmination of an “extremely extended accumulation schematic.”

“Right now it is decisional time, we have an extremely extended accumulation schematic which usually causes two potential scenarios: Aggressively close above the range high = search for buyside liquidity. Deviate the range high followed by bearish break = full bearish reversal towards the lows,” he told X followers.

BTC/USD perpetual contract two-hour chart. Source: Lars Kooistra/X

Trader Alan Tardigrade, meanwhile, revealed a potential support flip involving a downward-sloping trend line on the daily chart.

“The journey to new ATHs for $BTC has begun. Altcoins will outperform,” trader Moustache added, adopting an even more bullish interpretation of recent price action. 

BTC/USD two-week chart. Source: Moustache/X

BTC price “strength” on macro radar

Macro-based perspectives were cautious amid a lack of certainty over how tensions in the Middle East could play out next.

Related: ‘This is not World War III:’ Five things to know in Bitcoin this week

As Cointelegraph reported, markets were particularly concerned about the fate of oil traffic through the now-closed Strait of Hormuz.

“The world will likely come together to force Iran to open the Strait of Hormuz if this drags on,” trading company QCP Capital predicted in its latest Market Color analysis released on Wednesday.

QCP acknowledged that Bitcoin’s newfound “strength” could signal the return of risk-on sentiment.

“Energy is the input that keeps modern industry, and the AI supply chain, running. When it is disrupted, the impact shows up quickly in inflation expectations, manufacturing confidence, and risk pricing,” it wrote.

CFDs on WTI oil three-day chart. Source: Cointelegraph/TradingView

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