After signs of abating the situation in the Middle East, the risk-averse sentiment in the market cooled, pushing Bitcoin back from its low position this week. On 20 June, at one point, Bitcoin rose to $63,770, and then fell around $63,600, an increase of about 2.4 per cent in the day.

Prior to this, bitcoin fell at a high point of US$ 67,200 on June 15 and fell to about US$ 62,300 on June 18. The fall was accompanied by continuous outflows of real bitcoin ETFs from the United States, rising geo-strained temperatures, and overall pressure on risky assets.

Ceasefire expectations lead to risk assets Warming.

Reuter quoted United States officials as saying that Israel and Hezbollah in Lebanon had agreed to a ceasefire and that the arrangements would begin on Friday. The report also mentioned the willingness of the Iranian side to resume diplomatic contacts with the United States if the relevant conditions were respected.

This progress has eased market concerns about the expansion of the conflict. The resulting weakening of international oil prices has brought Brent and WTI crude oil closer to a few weeks low, with a decline of nearly 8 per cent within weeks. Risk-averse assets, such as gold and silver, are backsliding in parallel, suggesting that some of the funds are redirected to high-risk assets.

Derivatives silo up and up.

In addition to improved risk preferences, the repositioning of the derivatives market magnified the rebound. According to the report, on June 26, about $10.6 billion in bitcoin options will expire, and the market is looking at pre- and post-expiration silo changes.

The CoinGlass data show that the larger settlement-intensive area above the current price ranges from $64,000 to $65,000, with additional liquidity areas in the vicinity of $66,000. If prices continue to move up, the backside and passive flats may further increase volatility.

  • Major clearing areas: US$ 64,000 to US$ 65,000
  • Sub-liquidation area: close to $66,000
  • Size of expiry of options: approximately $10.6 billion

ETF is still out, market concerns are supported by $62,000

The institutional funding is not entirely strong. SoSoValue data show that the net outflow of real bitcoin ETF in the United States this week exceeded $226 million, continuing the withdrawal trend since mid-May. However, sales pressure has slowed down compared to previous weeks.

It was also mentioned that the proximity of $62,000 remained high on short-line lines. The CoinGlass heat is trying to show that between US$ 61,800 and US$ 62,000 is gathering more liquidity. If you break this area, the market could retest the June low point of about $59,200.

Next, traders remain concerned about the progress of US contacts with Iran, the expectations of the Fed’s policy, and changes in ETF financial flows. These factors will continue to affect the sustainability of the Bitcoin rebound.