Bitcoin tops $64K as improving risk sentiment boosts crypto market recovery

Key takeaways

• Bitcoin (BTC), Ethereum (ETH), and XRP extended their recovery as geopolitical concerns eased.
• Market sentiment improved after US President Donald Trump said Iran had reached out to discuss a potential agreement.
• Bitcoin has surpassed the key $64,000 resistance level, with a breakout potentially strengthening the short-term outlook.

Bitcoin (BTC) extended its recovery on Friday, climbing above the $64,000 level as improving investor sentiment supported a broader rebound across the cryptocurrency market.

The recovery comes after geopolitical concerns eased following comments from US President Donald Trump, who said Iran had contacted the United States to discuss a potential agreement. 

The remarks fueled hopes of reduced tensions in the Middle East, encouraging investors to return to risk assets.

The positive sentiment also helped Ethereum (ETH) edge closer to $1,800, while XRP stabilized after finding support near key technical levels.

Improving risk appetite supports Bitcoin recovery

Cryptocurrency markets gained ground as fears surrounding the recent escalation in the Middle East began to subside.

Investor confidence improved after Trump indicated that Iran had initiated contact with the United States regarding possible negotiations, raising expectations that diplomatic efforts could help prevent further conflict.

The shift in market sentiment prompted renewed buying across digital assets, allowing Bitcoin to recover toward an important technical resistance zone.

Bitcoin price analysis: Bulls target higher resistance levels

Bitcoin was trading around $64,300 at the time of writing, placing it just below the significant $65,000 resistance area.

Although the recent rebound has strengthened short-term momentum, BTC remains below several key trend indicators, suggesting the broader market structure has yet to turn decisively bullish.

Bitcoin continues to trade beneath the 50-day Exponential Moving Average (EMA) at $65,399, the 100-day EMA ($68,991), and the 200-day EMA ($75,024)

These moving averages form a strong overhead resistance zone that bulls must overcome before confirming a broader trend reversal.

Technical indicators suggest buying momentum is slowly returning. The Relative Strength Index (RSI) has moved above the neutral 50 level, indicating strengthening bullish momentum after weeks of weakness.

Meanwhile, the Moving Average Convergence Divergence (MACD) remains in positive territory, with the MACD line holding above zero and the histogram continuing to expand, signaling that upward momentum is gradually building.

While these indicators favor buyers in the short term, they have yet to invalidate the broader bearish structure.

The first major resistance for Bitcoin sits near the $64,686 horizontal level. A decisive daily close above this area would bring the 50-day EMA at $65,399 into focus. 

If buyers clear that hurdle, attention could shift toward the 100-day EMA at $68,991, followed by the 200-day EMA at $75,024.

Beyond those levels, the next significant long-term resistance lies around $84,410.

On the downside, Bitcoin lacks a strong nearby technical support zone, making the market vulnerable to renewed selling pressure if the current recovery loses momentum. 

In that scenario, traders will likely look to the $60,000 psychological level as the next major area where buying interest could emerge.

For now, improving geopolitical sentiment has provided Bitcoin with short-term support, but bulls will need to reclaim $64,000 and overcome the cluster of moving average resistance to strengthen the case for a sustained recovery.