ChainCatcher report, according to Cointelegraph, despite Bitcoin’s price falling below $71,000, data shows its bullish momentum remains intact. After reaching $76,000 on Tuesday, Bitcoin retreated 7% due to rising oil prices following Israel’s strike on Iranian gas facilities and higher-than-expected U.S. PPI data, which also weighed on U.S. equities. Analysts note that sustained buying from U.S.-listed Bitcoin ETFs and strategies continues to provide fundamental spot demand support. Bitcoin’s long leverage levels remain low, reducing the risk of cascading liquidations even if prices drop another 5%. Rising inflation concerns have negatively impacted fixed-income returns, paving the way for capital to eventually rotate from gold into Bitcoin. Bitcoin perpetual funding rates remained below neutral levels even as the price surpassed $76,000, indicating that the rally is driven by spot demand rather than derivatives speculation. Gold prices have shown signs of weakness; if capital begins flowing out of gold, it could serve as a catalyst for sustained Bitcoin price appreciation.
Bitcoin price falls below $71,000, but bullish momentum remains intact.
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Summary
Bitcoin’s price fell below $71,000 on Tuesday after reaching $76,000 earlier in the session, retreating 7% amid the Israel-Iran conflict and higher U.S. PPI data. Despite the pullback, bullish momentum remains strong. U.S.-listed ETFs continue to fuel spot demand, while low long leverage limits liquidation risks. Analysts’ Bitcoin price predictions indicate upside potential, as rising inflation pressures fixed-income returns and may redirect capital from gold. The perpetual futures funding rate remains below neutral, signaling spot-driven buying. A weaker gold price could further support Bitcoin’s rally.
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