Bitcoin Gains on US-Iran Deal Optimism, Markets Eye PMI Data

Bitcoin has been trading in a narrow range as uncertainty over the US-Iran talks and worries about the macro economy persist. An upward move materialized after an Al-Arabiya report stating that Qatar and Pakistan had put forward a compromise proposal, potentially opening a path to an agreement. The buying pressure eased after a diplomat engaged in the discussions cast doubt on the notion that a deal was near.

Some optimism around a possible breakthrough remains in the market, supported by the recent spate of encouraging reports and the approaching US midterm elections. An accord would alleviate worries about inflation and further rate increases, boosting risk appetite and lending Bitcoin some temporary support.

Another potential catalyst lies in Friday's US flash PMIs. A stronger-than-expected reading could spark a brief relief rally as risk sentiment brightens, but this would not alter the broader outlook. Firmer economic data coupled with sustained inflationary pressure would reinforce the case for additional Federal Reserve rate hikes. Conversely, a weak report could amplify growth anxieties, prompting risk aversion and adding further pressure on the cryptocurrency.

Bitcoin Technical Analysis – Daily Timeframe

Bitcoin's gains this week followed a bounce off the key 80,000 support level. Should the price fall back to that support, buyers are expected to step in around the zone, placing defined risk below it, while maintaining their aim for a move toward 98,000. Sellers, for their part, require a breakdown below support to pile in for a drop targeting 75,000.

Bitcoin Technical Analysis – 4 Hour Timeframe

A minor resistance level sits around 84,000. If the price reaches that zone, sellers are likely to gather near that area, keeping defined risk above it and aiming for a breach of the support. Conversely, buyers will look for a breakout to the upside to boost bullish bets toward the 87,400 level.

Bitcoin Technical Analysis – 1 Hour Timeframe

Looking at this timeframe, the risk-to-reward configuration favors sellers around the resistance zone. The buyers, meanwhile, need a decisive breakout to reach new highs.

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Thursday delivers the latest US Jobless Claims figures, while Friday wraps up the week with the US flash PMIs release.