Bitcoin [BTC] extended its weekly gain to 12% on Friday, after rising to $73.9K. At the time of writing, BTC had given back some of its gains and was trading at $70.6K.
But overall investor returns and relative strength against the gold and tradFi markets bolstered crypto assets as a hedge during geopolitical tensions.
With the potential end of the West Asian crisis still unclear, this could fuel the crisis BTCs rally in the short term?
Options traders are looking at $75k
As the West Asian crisis continues, there are still two weeks until the end of the quarter. Therefore, the market positioning for Options could provide a different insight into investors’ near-term risk appetite and expectations.
According to Glass junction$75,000 remained a key level where massive call buying (bullish bets) occurred. Lifting this level could trigger further upside momentum due to dealers’ hedging flows, the blockchain analytics firm added.
At the same time, the majority of putting (bearish bets) and hedging activity was concentrated at $60,000, indicating that advanced players were still prepared for another move down.
In other words, the $60,000-$75,000 price range could widen over the next two weeks, but a decisive resolution of the $75,000 hurdle could accelerate a price rise. insisting on $80,000.
In fact, BTC’s price was sharply rejected on March 13, around $75,000, marking the level as a major roadblock for bulls to extend the recent recovery.
What is slowing the outbreak?
Perhaps another factor that has kept BTC within its current range for a while is the lack of strong bidding. According to crypto research firm Swissblock, February’s dip below $60,000 was marked by strong interest as many players jumped to buy BTC at a discount.
The spike in network growth indicated an increase in the number of market participants, which helped stabilize Bitcoin’s price above $60,000 last month.
However, Swissblock stressed that a decisive breakout from the current supply would require a new peak in network growth or an increase in the number of buyers at this level.
A renewed increase in network growth would be a signal that participants are returning to the market. Otherwise, Bitcoin will remain in a recovery attempt and not in a confirmed expansion phase.
That said, BTC’s resilience this week was also driven by ETF flows. The Spot BTC ETFs were green all week, attracting net inflows of $767 million. If the positive trend continues next week, bulls may attempt to break the $75k level again.
Final summary
- BTC outperformed gold and the US stock market by more than 18% as the West Asian crisis enters its second week.
- Spot BTC ETFs saw weekly net inflows of $767 million, further fueling the crypto asset’s rise toward $75K.