Market trends continue to indicate a positive outlook for bitcoin, currently trading at $77,560.52, despite concerns over Iran-related developments and DeFi security breaches. The latest data shows that U.S.-listed spot ETFs attracted $663 million in investments on Friday, marking the highest inflow since January 15. Total investments reached $996 million last week, up from $786 million the previous week, highlighting strong interest from institutional investors in the largest cryptocurrency.
For a significant price increase to occur, this trend needs to be consistent. According to Timothy Misir, head of research at BRN, sustained inflows into ETFs signal long-term demand, while intermittent flows indicate short-term positioning, with consistency being more important than magnitude.
Bitcoin's price has remained relatively stable over the past 24 hours, trading just above $75,000 after reaching highs above $78,000 on Friday. Similar patterns are observed in other major tokens such as ether, XRP, and Solana. The AAVE token of DeFi platform Aave has decreased by 1% to $90 following the KelpDAO hack over the weekend. The DeFi dominance rate, which measures the share of DeFi coins in the total crypto market value, remains steady at around 3%.
Alex Kuptsikevich, chief market analyst at FxPro, notes that the pressure on the leading cryptocurrency is linked to negative reactions in stock markets to news about Iran, which has reduced risk appetite. BTC has lagged significantly behind equities in recent days, building potential but not yet moving to realize it.
The latest reports indicate that the U.S. attacked and seized an Iranian cargo ship attempting to bypass restrictions on Iran's ports. Meanwhile, traders are actively building short positions, betting against a breakout, which could fuel a short squeeze if prices hold steady, forcing traders to cover bearish bets and potentially pushing spot prices higher.
Read more: For analysis of today's activity in altcoins and derivatives, see Crypto Markets Today. For a comprehensive list of events this week, see CoinDesk's Crypto Week Ahead.
The chart shows weekly price swings in Solana, with one level standing out: $95.16, the low registered in April. Solana has remained below that level for 11 consecutive weeks after dropping below it in early February. In technical analysis, a level that previously acted as support often becomes resistance once it is broken, meaning traders who previously bought around that level may now look to sell if prices revisit it, limiting upside momentum. The fact that Solana has not yet climbed back points to sustained bearish sentiment and potential for deeper losses.
The next major support is seen directly at $50. A strong move above that level, backed by a surge in trading volumes, is needed to invalidate the bearish outlook.