Bitcoin at $70k: Is it about to explode amidst Trump’s ultimatum?

Trump’s Ultimatum and Bitcoin’s Unexpected Resilience

Geopolitics brutally enters financial markets, but the queen of cryptocurrencies refuses to bend. Following US strikes on Kharg Island, the true jewel of Iranian oil exports, Donald Trump issued a chilling warning. On Truth Social, he claimed to have spared energy infrastructure “out of decency,” while threatening to reconsider this decision if Iran continues blocking the Strait of Hormuz. Such escalation would historically have triggered a violent bearish movement on risk assets.

Yet Bitcoin displays spectacular resilience. After a brief correction Friday following initial announcements, the price quickly erased its losses to stabilize around $70,500. Far from succumbing to panic, BTC even posted a 4.2% weekly gain. Traders seem to have priced in geopolitical risk, transforming what could have been a crash into a simple accumulation phase before a potential breakout.

This relative strength demonstrates growing maturity in the crypto market. Where traditional investors flee to safe havens, crypto whales capitalize on every retracement to accumulate. The $71,000 level now acts as a major psychological support, proving that selling pressure is exhausting against increasingly fierce institutional demand.

$100 Oil and Fed Meeting: The Explosive Cocktail for Cryptos

While bombs shake the Middle East, it’s the oil barrel price that gives economists cold sweats. With crude propelled above $100, the specter of galloping inflation resurfaces. This energy surge comes at the worst time, just before the highly anticipated Federal Reserve meeting scheduled for March 17-18. Markets, which hoped for imminent rate cuts, now fear a restrictive discourse from Jerome Powell.

In derivatives markets, this uncertainty triggered a bloodbath for short sellers. Over $371 million in liquidations were recorded in 24 hours, with an overwhelming majority of short positions ($207 million). Traders betting on market collapse were caught off guard by BTC’s lightning recovery, mechanically fueling price increases through a short squeeze effect.

Despite this tense macroeconomic context, network fundamentals remain solid. If the Fed decides to maintain rates facing oil-imported inflation, Bitcoin could paradoxically strengthen its narrative as a hedge against monetary devaluation. The coming days will be crucial in determining whether this explosive cocktail triggers a new leg up or a trend reversal.

Can Bitcoin (BTC) Smash Through $80,000 This Month?

With price firmly anchored above $71,000, all eyes are now on the critical resistance zone of $73,000 – $74,000. This glass ceiling has already repelled buyer assaults four times over the past two weeks. However, current price compression and increasing trading volumes suggest a massive move is brewing behind the scenes. If BTC manages to break through this level, the path to a new historic bull run would be wide open.

Indeed, Bitcoin is compressed between several important order blocks. The majority still lies on the bears’ side with strong selling pressure between $72,000 and $74,000. Meanwhile, a 3-hour order block appeared between $69,700 and $70,500. This support must hold, otherwise Bitcoin will return to liquidate longs at $68,000 in the coming days.

Altcoins, for their part, follow the pace set by the market leader. Ethereum (ETH) and Solana (SOL) show respective weekly gains of 5.5% and 4.2%, proving that risk appetite remains intact. Current dynamics show investors are ready to ignore geopolitical noise to focus on the ecosystem’s long-term prospects. A confirmed BTC breakout could act as a catalyst for the entire sector.

As the Fed meeting rapidly approaches and the Damocles sword of an oil crisis hangs over the global economy, the question burns on every trader’s lips: will Bitcoin soar to new uncharted heights or suffer one final shake before its next rally?

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