Bitcoin Price Forecast: BTC holds above $71,000 as Trump signals Iran war could end “very soon”

• Bitcoin extends its recovery trading above $71,000 on Tuesday after finding support near the lower consolidation boundary the previous day.
• US-listed spot ETFs record an inflow of over $160 million, while Strategy adds 17,994 BTC to its reserve on Monday.
• Trump’s remarks that the Iran war could end “very soon” along with Monday’s drop in Oil prices are slightly improving investors’ sentiment, although markets remain cautious.

Bitcoin (BTC) is trading above $71,000 as of Tuesday, after finding support around the key level from the previous day. Institutional and corporate demand show signs of strength, as spot Exchange Traded Funds (ETFs) recorded inflows while Strategy (MSTR) added 17,994 BTC to its reserve on Monday.  Meanwhile, comments from US President Donald Trump that the war with Iran could end “very soon,” alongside Monday’s drop in Oil prices, have slightly improved investor sentiment, further supporting the Crypto King recovery.

Institutional, corporate demand supports BTC

Institutional demand for Bitcoin started the week on a positive note. According to SoSoValue data, spot Bitcoin ETFs recorded inflows of $167.03 million on Monday, following a second consecutive week of inflows. If these inflows continue and intensify, BTC could see a further recovery in the upcoming days.

On the corporate front, Michael Saylor announced on X on Monday that Strategy had purchased another 17,994 BTC, following its purchase of 3,015 BTC the previous week. Monday’s purchase brings the firm’s total holdings to 738,731 BTC, highlighting its continued aggressive accumulation strategy. Strategy’s average purchase price of all its holdings stands at $75,862, above current market prices.

Trump’s comments on war with Iran support Bitcoin recovery

US President Donald Trump said on Monday that the war with Iran could end “very soon”. He further added that “everything they have is gone, including their leadership”, reports Fox News. 

Meanwhile, the prolonged conflicts have raised concerns about global inflationary pressures due to rising Oil prices, which opened the week by sending West Texas Intermediate (WTI) to $113.28 during the Asian trading session on Monday, a level not seen since mid-June 2022.

Later, the news came in that the International Energy Agency (IEA) discussed a coordinated release of emergency oil reserves among G7 member countries to stabilize markets, which could add temporary supply to the market and cap the sharp spike in crude prices. 

The IEA news, alongside Donald Trump’s comments on the war, triggered sharp volatility in WTI prices, erasing all gains and sending WTI to a 5.84% loss from a daily high of $113.28 to a low of $79.70 on Monday.

Meanwhile, US equities closed slightly higher, with recent developments improving investor sentiment. Risky assets such as Bitcoin followed the positive narrative, rising 3.73% on Monday. As of writing on Tuesday, it continues to recover, trading above $71,000.

Despite a mild positive sentiment, market participants should still be cautious as Iran’s Revolutionary Guards said on Tuesday they would not allow “one litre of oil” ​to leave the Middle East if US-Israeli attacks continue, prompting a warning from President Donald Trump that the US would hit Iran much harder if it blocked ‌exports from the vital energy-producing region, reports Reuters.

“The heightened rhetoric did little to quell a sharp retreat in crude prices and a rally in global shares, which came after Trump expressed confidence,” said Reuters.

However, any signs of escalation in the ongoing conflict, such as attacks on oil tankers near the Strait of Hormuz or strikes on major oil storage facilities, could disrupt global shipping routes and tighten crude supply. Such disruptions likely fuel global inflation concerns, a scenario that weighs on Bitcoin, as noted in the previous report.

Bitcoin Price Forecast: BTC could extend its recovery if it closes above key resistance

Bitcoin price is trading above $71,000 on Tuesday after rebounding 3.73%, finding support around the lower boundary of the parallel channel, the previous day. The near-term bias is mildly bearish as price holds within the parallel channel, with its upper boundary, around $71,980, capping the latest rebound. BTC trades well below the 50- and 100-day Exponential Moving Averages (EMAs) at $73,209 and $80,461, respectively, so the broader trend remains negative.

The Relative Strength Index (RSI) at 53 on the daily chart shows neutral momentum after recovering from oversold territory, and points upward, indicating bullish momentum is gaining traction. In addition, the Moving Average Convergence Divergence (MACD) line on the same chart remains above the signal line, with green histogram bars expanding, suggesting still positive upside momentum against the channel’s downward geometry.

Immediate resistance stands at the channel top near $71,980, and a daily close above this barrier would open the path toward a retest of the $73,000 region.

If sellers defend the channel ceiling, initial support aligns with the structure’s lower boundary near $65,120, where prior lows and the channel floor converge. A break below that area would expose the horizontal support at $60,000, a level expected to attract stronger dip-buying interest.

(The technical analysis of this story was written with the help of an AI tool.)