Bitcoin held above the US$83,000 mark after experiencing volatility over the past 24 hours, with prices fluctuating between US$82,807 and US$84,545.
At the time of writing, Bitcoin was trading at US$83,412, down 0.26% since the opening of the Asian session on Wednesday.
Bitcoin's movement comes as the market remains focused on geopolitical tensions between the United States (US) and Iran, alongside rising crude oil prices that are exerting pressure on risk assets.
Bitcoin Faces Sharp Reversal
Bitcoin initially attempted to recover after dropping to US$82,555 on Monday—a one-week low.
The price subsequently climbed back above US$84,000 but failed to sustain that level before slipping again. Bitcoin traded within the US$83,600–US$83,100 range for several hours before selling pressure pushed the price to a low of US$82,807.
It later rebounded, crossing the US$83,500 mark around 2:00 AM US Eastern Time, before hitting a high of US$84,545 approximately seven hours later.
However, the gains could not be sustained, and Bitcoin retreated to trade around US$83,150.
Oil Prices Curb Bitcoin's Momentum
Rising crude oil prices have also acted as a factor limiting Bitcoin's momentum, following the cryptocurrency's earlier surge past the US$87,000 level.
Brent crude prices rose due to tensions involving the US and Iran, as well as concerns regarding the Strait of Hormuz. Although oil prices dipped slightly in the last few hours, they remain higher compared to the previous week. According to Kyle Rodda, a senior market analyst at Capital.com, rising oil prices are exerting pressure on non-income-generating assets like Bitcoin.
However, he observes that Bitcoin's technical structure remains relatively positive, with current movements reflecting consolidation within a short-term uptrend.
**Focus on Bond Yields and the US Dollar**
Bitcoin is also facing pressure from higher US bond yields, a strengthening US dollar, and geopolitical uncertainty.
Utkarsh Ahuja, founder and managing partner of Moon Pursuit Capital, notes that Bitcoin remains sensitive to liquidity conditions and investor positioning.
He states that tighter financial conditions could weigh on digital assets, while the use of leverage can amplify price movements when market sentiment shifts.
If bond yields remain high and the US dollar continues to strengthen, pressure on Bitcoin could persist. Conversely, a reversal in these conditions—following a reduction in leveraged positions—could trigger a rapid recovery in the crypto market.
**Bitcoin Liquidations Remain Controlled**
Data from Coinglass shows that approximately US$78 million worth of Bitcoin positions were liquidated on Tuesday, with short position liquidations exceeding US$44 million.
Across the broader crypto market, around US$195 million in long positions were liquidated, compared to approximately US$125 million in short positions.
This indicates continued high market volatility, though the pressure from Bitcoin liquidations has not yet reached excessive levels.
**ETF Flows Continue to Support Bitcoin**
Bitcoin’s earlier momentum was bolstered by spot ETF inflows, US Treasury liquidity, and growing retail investor interest.
However, rising geopolitical risks and energy prices have stalled some of that momentum as investors shift their focus back to assets perceived as safer. Current macroeconomic conditions are making it difficult for Bitcoin to extend its gains, even though demand from certain investment channels continues to provide support.
Bitcoin remains in a consolidation phase after failing to sustain levels above $84,000 and $84,500.
As long as the price holds above $82,800, the short-term structure allows room for a recovery towards the $84,000–$84,500 range.
However, a failure to maintain support above $82,800 could intensify selling pressure, particularly if oil prices and US bond yields continue to rise.
