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Bitcoin (BTC) has recovered the $61,000 mark, buoyed by progress in peace talks between the US and Iran, a weak global oil price outlook, and an inflow of funds into spot ETFs.
According to crypto media outlet Coingape on July 3 (local time), Bitcoin's price rose 2.46% to $61,644 that day. Cathie Wood, CEO of ARK Invest, assessed that the bullish argument for international oil prices weakened after progress in peace talks between the US and Iran. After US President Donald Trump mentioned the progress in negotiations between the two countries, risk asset preference revived, and the total cryptocurrency market capitalization also increased by 2.63% to $2.13 trillion.
Wood recently stated in 'In The Know' that the reopening of the Strait of Hormuz could increase crude oil supply and lower oil prices. She said, “I believe the more Hormuz opens, the more sharply oil prices could fall.” Coingape reported that 20% of the global crude oil supply that could not pass through the Strait of Hormuz could be released back into the market.
The weak outlook for international oil prices acted as a catalyst for Bitcoin's rebound. Crude oil traded at $68 that day, hitting its lowest level since February 2026. Negotiating teams from the US, Qatar, and Pakistan concluded talks on July 2, with a second round of negotiations scheduled for July 18. As geopolitical tensions eased, investors once again turned their attention to risk assets, including cryptocurrencies.
Bitcoin's price rose from $57,800 on July 1 to $61,700 on July 3. On the 4-hour chart, a double bottom pattern formed at the $57,800 support level on June 25 and July 1. Subsequently, Bitcoin broke above the $60,900 neckline resistance and closed above that level for five consecutive times. If buying pressure is maintained, the next resistance level is set at $63,944.
Technical indicators also support a short-term rebound. The Relative Strength Index (RSI) recorded 61, backing the bullish trend. The lengthening green bars of the AO indicator also signaled increased buying dominance. Coingape analyzed that if buying pressure maintains its lead, Bitcoin could rise to $67,000. However, if three consecutive closes occur below the $60,900 support level, the bullish outlook will be invalidated.
Institutional demand also supported the bottoming out theory. Analyst Ali Charts stated on X (formerly Twitter) that the TD Sequential indicator on Bitcoin's monthly chart showed a buy signal. This signal also appeared in Ethereum (ETH), XRP, and Solana (SOL). According to SoSoValue data, on July 2, Bitcoin spot ETFs saw a net inflow of $221 million. This is the largest inflow since the $467 million net inflow on May 5.
[Article Key Summary]
-Bitcoin recorded a 2.46% increase to $61,644 on July 3, and the total cryptocurrency market capitalization was tallied at $2.13 trillion, up 2.63%.
-Cathie Wood assessed that the reopening of the Strait of Hormuz would increase crude oil supply, weakening the bullish argument for oil prices.
-Bitcoin spot ETFs saw a net inflow of $221 million on July 2, the largest amount since May 5.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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