Bitcoin traded in a narrow range near the $74,000 level on Tuesday, giving back some of its earlier gains after briefly approaching $76,000. Market sentiment remained cautious as investors tracked oil price movements linked to the ongoing Middle East conflict and awaited key central bank decisions.
The world’s largest cryptocurrency was last up 0.2% at $74,291.5 during early trading hours. Over the past 24 hours, Bitcoin had climbed as high as $75,991.2 before losing momentum.
Bitcoin’s recent support came mainly from short covering, as traders closed bearish positions established during the early February sell-off. At the same time, steady inflows into spot Bitcoin exchange-traded funds and renewed institutional demand helped stabilize prices.
However, upside momentum has been limited. Analysts note that each rally attempt in March has faced resistance, with investors taking profits after quick price increases. This has created a pattern of short-term advances followed by consolidation, as the market searches for a clearer trend direction.
Geopolitical developments continue to influence sentiment. The conflict involving the U.S., Israel, and Iran has entered its third week, keeping global markets on edge. Oil prices, which briefly declined, moved higher again and remained above $100 per barrel amid concerns over potential supply disruptions in the Strait of Hormuz.
Elevated energy prices have reinforced inflation concerns, impacting investor behavior across multiple asset classes, including cryptocurrencies. While initial tensions triggered a risk-off environment, Bitcoin has increasingly shown signs of behaving as a defensive asset under certain conditions.
Attention is now shifting to the upcoming Federal Reserve policy decision. While the central bank is widely expected to leave interest rates unchanged, investors are closely watching for signals regarding inflation and future policy direction. Additional central bank meetings around the world are also scheduled this week, adding to market uncertainty.
In the broader crypto market, altcoins showed mixed performance. Ethereum gained 1.5% to $2,314.73, while XRP rose 3% to $1.53. Meanwhile, Solana edged slightly lower, and both Cardano and Polygon declined by around 1%. Among meme cryptocurrencies, Dogecoin also slipped by approximately 1%.
