Bitcoin climbed above $63,000 on Thursday, following Wall Street’s opening rally and a broader recovery in risk assets. Accelerated buying in US equities helped spark a wave of short position liquidations across the cryptocurrency market, mirroring the newfound optimism seen in traditional markets.
Trump’s remarks ease geopolitical concerns
The BTC/USD pair advanced about 1.5% during the day, pushing price past $63,000. Markets responded to statements from former US President Donald Trump, who indicated that, after a recent breakdown in ceasefire, Iran was once again seeking a new agreement. This fueled hopes that geopolitical tensions might de-escalate, encouraging increased risk-taking across markets.
Donald Trump stated that Iran was expressing interest in reaching a deal, reinforcing market expectations that tensions would not escalate further.
A broad rally unfolded across US stock indexes, reversing some of the selling pressure that dominated the previous session. This positive sentiment also spilled over into digital assets. According to data from CoinGlass, nearly $100 million worth of crypto short positions were liquidated in the past 24 hours, signaling wide-scale repositioning as derivatives traders scrambled to cover bets. CoinGlass is regarded as a leading platform tracking liquidations in crypto derivatives markets.
Glossary: Short position liquidation occurs when trades expecting a price drop are forcibly closed due to an adverse market move. This can spark a surge in buying, causing prices to jump higher in a short period of time.
Traders eye crucial price levels at the daily close
Market analyst Killa commented that the current structure does not appear distinctly bearish, noting the likelihood of ongoing price swings in the coming months. Killa suggested that $68,000 may serve as a key level to watch if traders attempt new short positions in the near future.
Market watcher Daan Crypto Trades highlighted that Bitcoin is moving between $61,300 and $64,700, with prices recovering this morning after yesterday’s risk-off selling.
Another analyst, Jelle, pointed out that buyers have not fully surrendered, maintaining that reclaiming support remains a possibility and that bullish momentum persists. Daan Crypto Trades emphasized that the $64,700 mark could be decisive for today’s closing direction, while the $61,300 range is being tracked as a key area of support.
Traders identified several pivotal price points: the featured intra-day price above $63,000, range support at $61,300, daily close to watch at $64,700, and a potential short position zone at $68,000.
Divergent views on Bitcoin’s bottom formation
Consensus is lacking on whether Bitcoin has established a significant long-term bottom. Some analysts highlight classic bottoming patterns emerging on the technical charts, while others believe comparisons to previous market cycles suggest the possibility of a deeper macro base.
As a result, despite the recent recovery, investors continue to monitor both daily closing levels and the durability of renewed risk appetite. Geopolitical developments and trends in US markets are expected to remain crucial in determining Bitcoin’s next direction.
