Bitcoin price was trading around $78,000 on Thursday after a strong weekly rally, but momentum slowed as new Middle East tensions limited risk appetite. Bitcoin (BTC) price was unable to break nearby resistance around $80,000, despite stable Bitcoin ETF inflows and improved spot demand. At the time of writing, BTC was trading at around $77,509, down around 1% on market data.
BTC/USD 24-hour price chart source: CoinMarketCap
Bitcoin Price Pauses After a Strong Weekly Run
Bitcoin started the week with firm momentum and gained nearly 6% before Thursday’s slowdown. However, the latest move showed that buyers now face a tougher test near overhead supply. BTC price action near $78,000 suggested the market needed a new catalyst before another push higher.
Besides that, traders appeared more cautious after Bitcoin approached the upper edge of its recent range. The pause did not erase the broader weekly advance.
Bitcoin price often reacts sharply when uncertainty rises across global markets. That pattern returned this week as geopolitical risk entered the picture again. Consequently, the bullish setup stayed intact, but confidence weakened in the short term.
Bitcoin ETFs Extend Seven-Day Inflow Streak
One key source of support came from institutional demand. Spot Bitcoin ETFs posted another day of positive flows on Wednesday, with inflows reaching $335.80 million. That marked seven straight sessions of net additions since April 13.
Source: Coinglass
Additionally, those inflows helped offset the pressure from cautious sentiment elsewhere. ETF demand has become a major pillar for Bitcoin price this year. When flows stay positive for several days, the market often finds firmer footing during periods of volatility.
This trend also matters because it signals continued engagement from large market participants. That support does not guarantee an immediate breakout. However, it does create a stronger base under price when momentum starts to fade.
Middle East tensions weigh on short-term sentiment
Despite the encouraging ETF picture, geopolitical stress kept a lid on further gains. There were fresh uncertainties with reports of attacks on ships in the Strait of Hormuz. The latter came after a new confrontation between the United States and Iran.
As a result, risk-sensitive assets started to lose momentum, and Bitcoin price halted after its recent upsurge. Bitcoin is frequently used by traders as a high-beta stock in stressful situations in the world. As the risk appetite becomes cold, the buying pressure may diminish even in constructive trends.
But the response did not initiate a complete collapse. Instead, Bitcoin entered a consolidation trend with players balancing the increased demand with the growing geopolitical tensions. The combination of price and support caused the price to be held near but unable to break resistance.
Bitcoin Enters Constructive Phase, Glassnode Says
Glassnode added another important layer to the outlook. Its latest weekly report noted that Bitcoin moved back above the True Market Mean. That shift matters because the level often separates bearish conditions from more constructive phases.
As per Glassnode’s assessment, improving spot demand and returning ETF inflows now support the recovery. Retail and institutional activity also appear to be improving. Even so, derivatives positioning still reflects a more cautious mood.
Source: Glassnode
That mix suggests a market in transition rather than a market in full breakout mode. Significantly, Glassnode’s view lines up with the recent price action. Bitcoin price has recovered important ground, but it still needs confirmation through stronger follow-through.
The firm also pointed to the importance of the $80,000 area. A sustained move above that level would likely require continued spot absorption and steady ETF support. On the other hand, failure to hold current levels could expose the market to faster downside moves in thin liquidity.
Bitcoin Price Stalls Near Breakout Zone
According to technical analysis, Bitcoin price traded with a mildly bearish tone over the last 24 hours. Price slipped about 0.85% after opening near $78,209. During the session, BTC reached a high of $78,604 and a low of $77,209.
That range showed active trading around nearby resistance. Bitcoin price remained above the 20-day Bollinger Bands middle line near $73,503, which kept the short-term trend constructive. Additionally, price stayed far above the lower band near $67,576.
BTC/USD 24-hour price chart source: TradingView
However, BTC traded just below the upper Bollinger Band near $79,431. That level highlighted growing resistance in the $79,000 to $79,500 area. As a result, buyers now need a stronger conviction to force a breakout.
The MACD remained positive with the MACD line higher than the signal line. Such an arrangement continued to give preference to upside momentum. However, the flattening histogram indicated that the new improvement had begun to weaken.
This combination is usually observed when a market is in need of absorbing previous gains. In itself, it is not an indicator of a reversal in the trend. It also cautions, though, that the price of Bitcoin might end up stagnating in a range until new demand is created.
Bitcoin OI-weighted funding rates stayed in negative territory, signaling that short positions still led activity in the derivatives market. In simple terms, many traders continued to position for limited upside rather than a lasting rally.
Source: Coinglass
Remarkably, such an arrangement would be favorable to Bitcoin price in case of upside momentum. When excessive market participants lean short, a rapid upward move can result in them being forced to cover positions. That process has the ability to increase the gains by a short squeeze.
Final Take
Bitcoin price appears stuck between support near $77,000 and resistance near $79,400. A break above resistance could reopen the path toward $80,000 and beyond. Moreover, continued ETF inflows would strengthen that scenario.
On the downside, a drop below $77,000 could trigger a deeper short-term pullback. That risk becomes more serious if geopolitical headlines worsen or spot demand slows. Therefore, the next few sessions may prove critical for the market’s near-term direction.
