Market sentiment remains tense, according to Odaily. However, the geopolitical risks related to the Middle East have been largely priced into the market, with oil prices reflecting a geopolitical premium of approximately $8 to $10 per barrel. If the conflict de-escalates faster than anticipated, risk assets may experience a tactical rebound.
From a technical perspective, Bitcoin has shown resilience despite a significant clearing of positions, as it has not experienced further notable declines. As the market enters a consolidation phase, the RSI is rising, indicating a bullish divergence. As long as this indicator continues to trend upward, the downward momentum of prices may be restrained. This suggests that the risk-reward ratio for increasing short positions at current levels is weakening.