On Monday, cryptocurrency prices experienced a significant increase after U.S. President Donald Trump announced a five-day postponement of attacks on Iran’s power plants, which alleviated fears of escalating conflict.

Bitcoin, which had dipped below $68,000 overnight, rose to above $71,000 in the early hours of trading in the U.S., before retreating closer to $70,000 following Iranian officials' statements indicating no ongoing talks with the U.S., according to CoinDesk. Other cryptocurrencies, including Ether, Solana (SOL), and Chainlink, saw gains of up to 5% within 24 hours before pulling back some of their profits.

Technical analysis shows that Bitcoin is currently trading within a well-established descending channel. Experts indicate that both the 100-day moving average (approximately $80,000) and the 200-day moving average (around $92,000) are trending downward. An analyst from CryptoPotato noted, “The $75,000-$80,000 range has now turned into a resistance zone after previously serving as support for most of late 2025, with every recovery attempt since February being rejected in that area.”

Immediate support for Bitcoin is identified in the $60,000-$62,000 range, which held during a sharp decline in February. “A breakdown below that level could see the $50,000 area come into play, a scenario not yet reflected by the RSI, which is recovering from oversold levels near 20. Conversely, buyers need a decisive close above $75,000 to alter the current daily structure and pave the way for potential gains above $80,000,” the analyst stated.

In contrast, higher-risk assets like memecoins—including $TRUMP, $PEPE, and $PENGU—were severely impacted during the recent market downturn, experiencing declines of up to 20%, underscoring their heightened sensitivity to broader market dynamics.

According to Ignacio Aguirre Franco, CMO at Bitget, Bitcoin's fluctuation around the $70,000 mark is a consequence of mixed global market factors. “Rising geopolitical tensions and the likelihood of extended conflicts have prompted investors to seek out less volatile assets, triggering a classic risk-off move. CoinMarketCap data indicates that crypto ETFs suffered outflows of $98.80 million on March 20, with ETF inflows—previously a key driver of the recent uptrend—slowing down and diminishing new market demand.

Looking ahead, the broader outlook remains positive as institutional interest persists and Bitcoin’s fundamental strengths are solid. Franco commented, “The recent pullback appears to be a temporary correction rather than a long-term reversal. Should macro conditions stabilize and ETF flows resume, Bitcoin might regain upward momentum. However, in the short term, expect ongoing volatility as markets respond to global developments and liquidity situations.”

Simon Peters, a Crypto Analyst at eToro, added, “Although macroeconomic factors have prompted short-term volatility in cryptocurrency markets, the evolving regulatory environment in the U.S. signifies considerable progress. Enhanced clarity regarding asset classification and market structure could facilitate increased institutional involvement and long-term sector growth.”