Bitcoin Price Rebounds to $65,660 Following Sharp Reversal Amid Geopolitical Concerns

Bitcoin Price Update

As of March 9, Bitcoin prices experienced a sharp decline to $65,660 in early trade, but later recovered to $67,219 by 9:30 am IST, representing a 0.29% increase over the last 24 hours.

Market Drivers

The recent pullback in Bitcoin prices can be attributed to a sharp reversal in US spot Bitcoin ETF flows and growing concerns around inflation and geopolitical tensions. The surge in oil prices, driven by the ongoing conflict involving the US, Israel, and Iran, has also weighed heavily on both cryptocurrencies and equities. Oil prices have started the week nearly 20% higher.

Read also: Bitcoin Price Sinks 6% Below $66,500 Amid ETF Outflows and Institutional Selling

Institutional Activity

US spot Bitcoin ETFs have recorded $568.45 million in inflows over the past two weeks, following a previous $787.31 million gain. However, daily flows have been volatile, with notable outflows toward the end of the week.

Technical Analysis

From a technical perspective, the $63,700 level remains a critical support for Bitcoin. A decisive break below this level could push the price toward the next support zone near $57,000.

Read also: Bitcoin's Inflation-Hedging Potential Erodes as Price Falls Below $70,000

Cryptocurrency Market

Other cryptocurrencies followed the cue, with Ethereum up 1.52%, BNB 0.97%, XRP 0.05%, Solana 0.84%, TRON 1.42%, Dogecoin 1.33%, and Cardano 0.44% over the last 24 hours.

Investor Insights

Bitcoin is trading near $66,000 after profit-taking by short-term holders intensified selling pressure near the $74,000 level. Bulls must defend the $63,500 support to avoid further downward pressure. Outflows from Bitcoin ETFs in the last two days further contributed to the weakness, but weekly ETF flows remain positive at $568 million.

Macro Triggers

As key macro triggers such as the US CPI release (March 11) and the Federal Reserve meeting (March 17-18) approach, volatility could rise in the near term. Investors are advised to avoid aggressive leverage and focus on disciplined accumulation near structural support zones, maintaining liquidity to respond to macro-driven price swings.