 ▲ Bitcoin (BTC) |
Bitcoin (BTC) has overcome the weekend price volatility triggered by geopolitical tensions in the Middle East, with its real-time sentiment index beginning to recover.
According to cryptocurrency media outlet Cointelegraph on March 4 (local time), Bitcoin briefly plunged to the $63,000 range over the weekend following news of military clashes between Iran and Israel. However, buying at the lows soon emerged, allowing the cryptocurrency to reclaim the $73,000 level. During this volatile period, the Advanced Sentiment Index—which measures real-time market sentiment—quickly shifted from extreme fear to optimism, supporting the price rebound. Experts assessed that Bitcoin once again demonstrated its resilience as a store of value by absorbing the massive negative shock of war.
The weekend decline was amplified by the liquidation of excessively leveraged positions in the derivatives market. On-chain data showed that as Bitcoin fell below $65,000, hundreds of millions of dollars in long positions were forcibly liquidated, ultimately providing a healthy correction that cooled overheated market conditions. Analysts noted that large whales accumulated tens of thousands of BTC during the downturn, reinforcing the market’s downside support.
The sharp rebound in the sentiment index indicates that retail investors increasingly viewed the recent drop as a final buying opportunity at the bottom. Positive mentions across social media and online communities surged, pushing confidence in Bitcoin close to record highs. Market analysts explained that the real-time sentiment index often serves as a leading indicator ahead of price movements, and the current optimistic readings strongly suggest the potential for further gains.
From a technical perspective, Bitcoin has broken above key moving averages, maintaining its bullish trend. The Relative Strength Index has exited oversold territory and entered an upward trajectory. After successfully absorbing selling pressure around the $72,000 level, Bitcoin is expected to enter a price discovery phase aimed at setting new all-time highs. Renewed inflows into spot ETFs from institutional investors are also cited as a key factor supporting upward momentum.
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