[DigitalToday reporter Yoonseo Lee] Bitcoin recouped most of its early-week losses and rebounded to around $79,000.

On May 3 (all times local), blockchain media outlet Cointelegraph reported that bitcoin topped $78,670 on a weekly closing basis, marking its highest weekly close since late January.

Markets continue to respond to geopolitical variables involving the United States and Iran. On May 2, buying flowed into risk assets broadly after the possibility of a new peace agreement between the United States and Iran was raised. But on May 3, U.S. President Donald Trump said of Iran's recent peace proposal, "It's hard to imagine accepting," taking a cautious stance.

Even so, some market participants view the near-term trend positively. Crypto analyst Michaël van de Poppe said on X, formerly Twitter, that bitcoin is showing strong sideways movement, adding that "Friday's move gave us a slight insight in what's likely to come." He cited about $630 million of inflows into U.S. spot bitcoin exchange-traded funds (ETFs) on May 2.

Van de Poppe said it is highly likely those inflows will not slow next week, and that this could be why the current pullback is shallow. As spot ETF flows are interpreted as supporting downside prices, expectations have also grown that bitcoin could lift its upper range on a weekly closing basis.

Others, however, are also wary of short-term overheating. The market has raised the possibility that prices could be pushed back after first absorbing overhead liquidity. Crypto Tony, citing CoinGlass data, said liquidity is also building on the downside, but the market could first take higher-area liquidity and then use it for a drop.

JDK Analysis also assessed the current liquidity structure as a "typical bearish phase." The analyst said new long positions are continuing to enter near recent highs, but the price is not rising meaningfully even on aggressive market buys. With upside momentum weak even as buying increases, it is read as a signal to be wary of a pullback after an upper-level test in the short term.

This week's bitcoin close is expected to be determined as conflicting factors intersect. Large inflows into U.S. spot bitcoin ETFs and the recouping of weekly losses are acting as price-supporting factors. By contrast, uncertainty over U.S.-Iran negotiations and concentration of overhead liquidity remain factors that could increase short-term volatility.

Accordingly, the market is watching whether bitcoin can hold the $78,670 level steadily and maintain its strongest weekly close since late January. If it holds that range, expectations for a rebound backed by spot ETF inflows could strengthen further.

Still, with geopolitical uncertainty and the burden of overhead liquidity both remaining, it is difficult to rule out expanded short-term volatility. Whether bitcoin confirms support around $79,000 even after the weekly close is cited as a factor that will determine the next direction.

Strong consolidation on $BTC, and Friday gave us a slight insight in what's likely to come. There was $600 million in ETF inflow on the first trading day of the month. I don't think this will slow down in the coming week and that's probably why we're seeing a relatively shallow… pic.twitter.com/PwE4Oyamcn