Bitcoin (BTC) price is now eyeing a rally towards $80,000 after breaking above a major multi-week sell wall on April 17.
After getting rejected around $76,150 since its capitulation in early February, BTC price jumped 6.95% in the past seven days and was trading at about $77,380 at press time. As a result, the flagship coin added more than $5,028 this week, thereby signaling a potential reversal towards $80,000 in the near future.
Furthermore, a heavy liquidation of short traders, amounting to $306 million out of the total $326 million rekt in 24 hours according to data from CoinGlass, could fuel a short squeeze – a rally triggered when forced short-covering generates cascading buy pressure.
Additionally, Bitcoin price has rallied above the 1 to 3 months Short-Term Holder (STH) cost basis of around $75,620, after recently rebounding above the 18 months to 2-year Long-Term Holders’ (LTH) realized price of $62,000, based on analytics from CryptoQuant.
Bitcoin price rally bolstered by easing Middle East tensions
The Bitcoin price rally today, above $77,000 for the first time in more than two months, was catalyzed by the easing of tensions between the U.S. and Iran. Furthermore, investors turned to Bitcoin and the wider crypto market, which were perceived as risky assets.
“The Strait of Hormuz is completely open and ready for business and full passage,” President Donald Trump stated. “Iran has agreed to never close the Strait of Hormuz again,” he added.
As part of the 3-page peace plan, the United States would release $20 billion in frozen Iranian funds, and in return, Iran should surrender its uranium enrichment, with an exception for research reactors.
The easing of the geopolitical crisis in the Middle East has bolstered demand for Bitcoin, which had been lagging behind other major stock indexes, as Finbold reported. In light of this, if BTC price retraces below $76,000 in the coming days, a bull trap could materialize as traders pivot toward a sell-the-news stance.
