Bitcoin trying to regain some of the lost ground

Bitcoin (BTCUSD) is struggling to find a clear direction as it fluctuates near its lowest levels in three weeks. The cryptocurrency continued its decline, dropping to around $76,000 on Monday, driven by persistent inflation data that dampened expectations for a Federal Reserve rate cut. This downturn mirrors a broader withdrawal from risk assets, with significant losses also seen in Ether, XRP, and Solana.

Despite the recent four-day slide, Bitcoin’s downside appears limited on Tuesday morning as traders monitor developments in the US-Iran situation. The pair is currently trading around the mid-$76,800 range after briefly dipping to $76,000.

Rising Fed Rate Hike Expectations and Geopolitical Tensions

Heightened expectations of potential rate hikes and a more hawkish stance from Federal Reserve policymakers have increased pressure on Bitcoin and other risk assets. For the rest of 2026, markets have largely ruled out the prospect of a Fed rate cut. Instead, persistent inflation concerns have led investors to anticipate at least one rate increase before year-end.

Market sentiment also remains cautious amid continued geopolitical tensions in the Middle East, which have contributed to increased volatility in global financial markets. However, tensions eased slightly after the US reportedly postponed a planned strike on Iran under pressure from Gulf nations, providing temporary support for Bitcoin and other risk assets. Investors are now focused on updates regarding US-Iran negotiations, the upcoming Fed meeting minutes, and speeches from several Fed policymakers for new trading cues.

Bitcoin (BTCUSD) Technical Analysis

Bitcoin currently exhibits a neutral to slightly bullish short-term bias after rebounding from key support levels. While overall momentum remains mixed, technical indicators on the 4-hour and 1-hour charts suggest the price is in recovery from the recent decline. As of this writing, BTCUSD is trading near $76,800.

In the short term, if the recovery continues, Bitcoin could target the $77,300 and $77,700 resistance zones, which may present immediate hurdles before the $78,500 level. A decisive move above the $78,500–$79,000 resistance is required to confirm a stronger bullish outlook. Conversely, a sustained break below the $76,000 support would shift the near-term bias back toward a bearish trend.

 

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