The cryptocurrency market is showing signs of recovery after experiencing a significant sell-off over the weekend, primarily triggered by escalating geopolitical tensions following the United States' strikes on Iranian nuclear sites. Bitcoin (BTC) saw a sharp drop below $100,000, reaching a low of $98,200, but has since rebounded above $101,000. Similarly, major altcoins like Ethereum (ETH) and Ripple (XRP) are also paring losses, indicating a renewed positive sentiment across the broader digital asset landscape.

The US President's order for strikes on three Iranian nuclear sites on Saturday sent shockwaves through global markets, causing Bitcoin's price to hit its lowest point since May 8th and leading to widespread liquidations exceeding $1 billion. Despite the volatile environment, digital asset financial products, including spot Exchange Traded Funds (ETFs), have continued their bullish streak, attracting $1.24 billion in inflows last week. Year-to-date inflows have reached a record $15.1 billion, according to CoinShares. Bitcoin and Ethereum dominated these inflows, with $1.1 billion and $124 million respectively, reflecting strong investor confidence even amid geopolitical uncertainties. Ethereum, in particular, recorded its ninth consecutive week of inflows, totaling over $2.2 billion, marking its longest inflow run since mid-2021.

Bitcoin's rebound above $100,000 is seen as a bullish signal, with QCP Capital noting that the weekend drawdown was likely macro-driven, prompting investors to view crypto as a hedge. Technically, Bitcoin's Relative Strength Index (RSI) is reversing its trend, suggesting a gradual shift towards bullish momentum. Key monitoring levels for BTC include the 100-day Exponential Moving Average (EMA) at $99,212 as support and the 50-day EMA at $102,954 as resistance. A break above the 50-EMA could pave the way for further gains beyond $105,000.

Ethereum is also showing subtle signs of recovery, stabilizing around the $2,111 support level. Although its RSI is near the oversold region, a reversal is in progress. Resistance levels for ETH are identified at the 100-day EMA ($2,366), 50-day EMA ($2,417), and 200-day EMA ($2,469). Overcoming these hurdles would strengthen Ethereum's bullish structure. However, the Money Flow Index (MFI) for Ethereum suggests a strong bearish grip, indicating a potential lack of conviction among traders to sustain the recovery. Meanwhile, XRP, a leading cross-border money transfer token, appears to be showing signs of weakness despite reclaiming ground slightly above the $2.00 support. If downside risks intensify, XRP could see further losses towards $1.80 and $1.61, with its RSI pointing downwards. The 200-day EMA at $2.09 could cap any upside gains, favoring consolidation above the $2.00 support level.

Factors like token launches and exchange listings can influence demand by deepening liquidity and attracting new participants. Conversely, hacks, which involve attackers exploiting vulnerabilities to steal assets, often trigger panic sell-offs. Macroeconomic events, such as the US Federal Reserve's interest rate decisions, directly impact the US Dollar and, consequently, crypto asset prices. An increase in interest rates typically has a negative effect on Bitcoin and altcoins, while a decline in the US Dollar index can make risk assets and associated leverage cheaper, driving crypto prices higher. Halving events, which reduce the block reward for miners, are generally considered bullish due to the resulting constriction in supply against consistent demand.