Bitcoin Recovery Looks Weak as Sellers Still in Control

Bitcoin is showing a slight recovery, trading just above $67,800 on Monday after finding some support near a key level. This comes after two weeks of decline, but overall sentiment remains weak. Demand from institutional investors has slowed, and ongoing tensions in the Middle East are keeping traders cautious.

Institutional interest appears to be fading. Bitcoin spot ETFs had $296 million in outflows last week, ending a four-week streak of inflows. If this trend continues, it could add further pressure on the price.

The conflict in the Middle East has now lasted over a month and is escalating without a clear resolution. Reports suggest the US might consider a ground invasion of Iran, which adds to the uncertainty. Meanwhile, rising oil prices are fueling inflation worries that could push central banks toward tighter policies.

This kind of environment tends to weigh on risk assets like Bitcoin, as investors become more cautious. Still, Bitcoin has remained fairly stable compared to gold and stocks, staying within a $65,000 to $75,000 range.

Part of this stability comes from the fact that Bitcoin already fell nearly 50% from its all-time high of $126,199 to around $60,000 earlier this year, which absorbed much of the selling pressure.

Despite this, market sentiment is fragile. The crypto Fear & Greed Index has dropped into extreme fear, indicating investors remain cautious.

This week, attention will be on key macro events. Federal Reserve Chair Jerome Powell is scheduled to speak, and important US data will be released, including ADP employment, ISM manufacturing and services PMIs, and the Nonfarm Payrolls report. These will influence expectations around interest rates and the bigger economic picture.

Technically, Bitcoin is bouncing off the $65,000 to $67,000 support area, but the structure looks weak. The current move seems like a short-term bounce rather than a sustained trend.

Price is moving within a rising channel, which often signals weak momentum. Resistance is forming between $69,000 and $71,000, with a stronger zone around $71,000 to $72,000, where the price has struggled before.

Momentum indicators are flat, showing that buyers don’t have the upper hand. This suggests the current movement is reactive, not driven by strong demand.

If Bitcoin can hold above $67,000 and break through $69,000, it could push toward $70,000 to $72,000. But if it falls below $67,000, the price might drop back to $65,000, and possibly down to $63,000.

Overall, Bitcoin is still trading in a range with a slight risk of moving lower. It won’t be a confirmed uptrend unless the price breaks above resistance and holds.

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