Bitcoin (BTC) surged to around $72,700 during Tuesday’s New York trading session as oil prices dropped below $100 per barrel following Donald Trump’s confirmation of a two-week ceasefire with Iran.
Key takeaways:
- Bitcoin jumped about 7% to $72,700 on Tuesday following news of a US–Iran ceasefire, triggering a wave of liquidations across the market.
- More than $431 million in short positions were wiped out over the past 24 hours, as a short squeeze accelerated the rally.
- However, traders say Bitcoin must decisively break above the $72,000–$76,000 range to confirm a sustained trend reversal, with recent moves still largely driven by liquidation dynamics rather than a clear structural shift.
Bitcoin hits three-week high with 7% rebound
Data from TradingView shows BTC climbed as much as 7.4% to $72,760 on Tuesday, rebounding from a low of $67,274 and fully recovering losses from the past 20 days.
The last time the BTC/USD pair traded above the $72,000 level was on March 18.
The price move followed Donald Trump’s confirmation of a two-week ceasefire with Iran, conditional on the “complete, immediate, and safe” reopening of the Strait of Hormuz.
“Geopolitics moves crypto faster than any technical analysis. One post from Trump and billions flow back into markets,” analyst Mr Brondor said, commenting on Bitcoin’s reaction to the news.
The rally was accompanied by roughly $431 million in short liquidations over the past 24 hours, including about $214.8 million in Bitcoin shorts. Total liquidations across the broader crypto market reached around $610 million during the same period.
Meanwhile, oil prices reversed sharply after earlier surging amid the conflict. Prices, which had climbed to between $110 and $118 per barrel, fell as much as 16% to $92 from an intraday high of $110. WTI crude dropped to $90 before recovering to around $95 at the time of writing.
Commenting on Bitcoin’s price action, trading firm QCP Capital said that despite the recent gains, the broader market setup remains fragile.
“Hormuz reopening is conditional, infrastructure damage has already occurred, and Friday’s talks will need to deliver tangible progress,” the firm wrote in its latest Market Color update, adding:
“For now, the key question is whether that relief rally can hold through the next cluster of catalysts, including Fed minutes, CPI, and the first real diplomatic test of this two-week pause.”
BTC price trend change still uncertain
Bitcoin continues to face bearish risks to a sustained recovery, with traders wary of a potential repeat of a bear-flag breakdown on the daily chart.
“BTC bulls still have a lot of work to do,” crypto trader Jelle said in a post on X, adding:
“The argument for a bearish flag into key resistance remains strong.”
The analyst cautioned against becoming “euphoric” over the recent relief rally, noting that upside momentum could stall at resistance along the flag’s upper boundary within the $72,000–$76,000 supply zone, as illustrated in the chart.
“Bitcoin has reclaimed the $72,000 level, but bears are defending this zone,” analyst Crypto Patel said, adding that the next major move will likely be determined once BTC breaks above $76,000.
“HTF close above $76K → high chances BTC pushes toward $86K–$90K. Rejection from $76K → Next leg down below $60,000.”
As previously reported, many traders are anticipating another leg down for BTC/USD toward the 200-week moving average and the realized price—levels that have historically signaled bear market bottoms.
