Bitcoin traded largely in a narrow range near $74,000 on Tuesday, retreating from earlier gains after briefly rising to near $76,000, as investors monitored oil price volatility linked to the Middle East conflict and awaited key decisions from central banks.
The world's largest cryptocurrency was trading up 0.2% at $74,291.5 by 09:07 Saudi time.
Bitcoin had risen to $75,991.2 in the past 24 hours.
Bitcoin is supported by short covering and ETF flows.
Bitcoin received support from short covering as traders closed the bearish positions they had built during the sell-off in early February. However, the momentum faded during the session, leaving Bitcoin hovering near stable levels.
Prices also supported renewed institutional inflows and continued flows into Bitcoin spot exchange-traded funds (ETFs).
Despite the recovery, Bitcoin's trajectory during March wasn't entirely smooth. Every attempt to rise encountered selling pressure near previously identified resistance levels as traders took profits after quick gains, Axel Rudolph, a market analyst at IG, noted in a recent report.
This produced a pattern of rallies followed by consolidation phases as the market looked for a clearer direction, he added.
Fears of a war with Iran and rising oil prices persist; a Federal Reserve meeting looms.
Geopolitical tensions remained in focus as the conflict involving the United States, Israel and Iran entered its third week, keeping risk sentiment fragile across global markets.
Oil prices fell overnight but recovered on Tuesday, holding above $100 a barrel as concerns persisted about potential supply disruptions through the Strait of Hormuz.
High energy prices have heightened concerns about continued inflation, impacting investor sentiment across asset classes, including cryptocurrencies.
While escalating global tensions initially triggered risk-averse selling, the cryptocurrency later began trading more like a defensive asset as the situation evolved, said Rudolph of IG.
Investors are now focused on the Federal Reserve's upcoming monetary policy decision, due on Wednesday. The central bank is widely expected to leave interest rates unchanged, although markets are closely watching for comments on inflation risks.
In addition to the Fed, a series of global central bank meetings are scheduled to take place this week.
Cryptocurrency prices today: Altcoins are mixed in volatile trading.
Ethereum, the world's second-largest cryptocurrency, rose 1.5% to $2,314.73.
The world's third-largest cryptocurrency, XRP, rose 3% to $1.53.
Solana fell by 0.3%, while Cardano and Polygon each declined by 1%.
Among meme coins, Dogecoin also fell by 1%.
