27.03.202609:13 Forex Analysis & Reviews: Bitcoin shows safe-haven properties

Despite Bitcoin's drop from $72,000 to $68,000 this week, a number of experts responsibly claim that Bitcoin is now in better shape than ever.

JPMorgan noted an interesting trend: amid the intensifying Middle East conflict, Bitcoin has begun to exhibit characteristics typical of traditional safe-haven assets. This shift in perception of the best-known cryptocurrency has been particularly visible over the past month, when BTC demand rose while interest in gold and silver weakened.

Gold and silver recently plunged — delivering the largest one-day fall on record — as markets priced in the risk of higher interest rates.

Flow analysis for the first three weeks of March supports this hypothesis. About $11 billion was withdrawn from gold-linked ETFs, and silver ETF inflows also turned negative. Against that backdrop, Bitcoin recorded net inflows, signalling a reallocation of investment strategies amid rising uncertainty.

A notable spike in crypto activity was observed in Iran. Facing currency pressure and possible capital controls, users began moving funds off local exchanges into personal wallets and onto international trading platforms. This indicates that Iranians are seeking alternative ways to preserve and protect savings.

This suggests that in times of military conflict, currency pressure and threats of capital controls, Bitcoin increasingly functions as a type of safe haven. Investors aiming to shield assets from geopolitical risk and inflationary pressure are turning to decentralised digital assets. This emerging trend highlights growing recognition of Bitcoin as a store-of-value instrument in a world of heightened instability.

Trading recommendations

Bitcoin

Buyers are currently targeting a return to $69,100, which would open a direct path to $70,700 and then to $72,500. The more distant upside target is around $74,600; a break above that would indicate attempts to resume the bull market. On the downside, buyers are expected at $67,200. A move back below that area could quickly push BTC toward $64,900, with a further downside target near $62,600.

Ethereum

A clear close above $2,098 would open the way to $2,175. The more distant upside target is around $2,238; a break above that would indicate strengthening bullish sentiment and renewed buyer interest. On the downside, buyers are expected at $2,023. A move below that area could quickly send ETH toward $1,936, with a further downside target near $1,845.

What's on the chart

• The red lines represent support and resistance levels, where price is expected to either pause or react sharply.
• The green line shows the 50-day moving average.
• The blue line is the 100-day moving average.
• The lime line is the 200-day moving average.

Price testing or crossing any of these moving averages often either halts movement or injects fresh momentum into the market.