Bitcoin kicked off the new week with a robust rally, gaining 3 percent to trade as high as $69,120. The cryptocurrency market’s upbeat momentum came as investors returned after the Easter holiday, buoyed by renewed hopes of a ceasefire involving Iran. The uptick propelled Bitcoin to its highest level in the past week, signaling a positive shift in investor sentiment.
Optimism spreads across crypto assets
The wave of positivity was not limited to Bitcoin alone. Ether, the second-largest cryptocurrency, delighted its investors with a 3.7 percent jump, reaching $2,130 and marking its strongest intraday increase in a week. Other major cryptocurrencies followed suit: Solana (SOL) climbed by 2 percent, XRP increased by 2.2 percent, and Dogecoin saw a 1.7 percent gain, trading at $0.093. These moves pushed the total cryptocurrency market capitalization back above the $2.5 trillion threshold.
Reports that US, Iranian, and regional mediators are discussing terms for a possible 45-day ceasefire emerged as a key driver behind the crypto rally. Signs that new vessels are beginning to traverse the Strait of Hormuz have helped ease risk perceptions, adding further calm to markets. However, tough statements from Donald Trump on Iran have not gone unnoticed, raising some geopolitical concerns despite the prevailing optimism.
Short position liquidations spurred price swings
Market data indicated that, prior to the weekend, most investors were betting on a decline in cryptocurrency prices. Over the past 24 hours, $273.8 million in positions were liquidated, with short positions accounting for $196.7 million of that total. This gap between short and long liquidations points to the prevalence of bearish expectations last week. A standout example came from the Binance exchange, where a single $10.17 million short position on ETH-USDT was liquidated—the largest transaction of the period.
Throughout the past day, Bitcoin traded in a range between $66,634 and $69,350—a $2,700 swing that underlines how volatile the session proved to be, especially as those holding short positions incurred losses during the rapid upside movement.
According to data from the analytics platform Santiment, social media commentary reflected notably pessimistic sentiment over the weekend. For the first time since the onset of the conflict, the ratio of negative to positive posts reached its highest level. Historically, however, such bouts of negativity have often been followed by swift rebounds in the crypto market.
Following the latest rally, Bitcoin is once again approaching the upper end of its trading range since the start of the conflict. Nonetheless, the cryptocurrency remains locked in a horizontal channel, moving between $65,000 and $73,000. As highlighted in a CoinDesk report, the $71,500 and $81,200 levels are expected to act as critical resistance zones in the coming period. The decisive variable driving future price action is whether a 45-day ceasefire agreement will ultimately materialize.
“The most significant factor influencing near-term price direction is the potential implementation of the proposed 45-day ceasefire,” analysts at CoinDesk noted in their latest market commentary.
