Bitcoin surged 3% to $69,120 on Monday as traders came back from the Easter weekend, fueled by a wave of optimism regarding a potential ceasefire in Iran. This rally propelled the largest cryptocurrency to its highest point in more than a week, resulting in the liquidation of $196 million in short positions within the last 24 hours. Ether surged ahead of major tokens, recording a notable 3.7% increase to $2,130, marking its most significant daily movement in the last week. SOL surged 2% to $82, XRP increased by 2.2% to $1.34, and dogecoin advanced 1.7% to $0.093. The widespread surge has propelled the total cryptocurrency market capitalization back over the $2.5 trillion mark. An report revealed that the U.S., Iran, and a coalition of regional mediators are in talks regarding terms for a potential 45-day ceasefire, which could pave the way for a lasting resolution to the six-week-old conflict.
Reports indicating that additional ships had navigated through the Strait of Hormuz contributed to a sense of relief, even as Trump escalated his rhetoric with threats to target Iran’s power plants beginning Tuesday. The liquidation data reveals the positioning of the market as it approached the weekend. In the latest data, a staggering $273.8 million in total 24-hour liquidations impacted 81,819 traders, with shorts dominating at $196.7 million compared to $77.1 million in longs. This nearly 3-to-1 ratio suggests that traders were significantly betting on continued declines following last week’s sentiment downturn. The most significant liquidation recorded was a $10.17 million ETH-USDT short position on Binance.
Bitcoin experienced a 24-hour range between $66,634 and $69,350, marking a notable $2,700 fluctuation that impacted those heavily positioned short. The decision followed the release of Santiment data over the weekend, revealing that social media sentiment had reached its most bearish skew since the onset of the war, with five negative posts for every four positive ones. In the world of crypto, it’s not uncommon for the most pessimistic sentiment reading of the cycle to trigger the most significant rebound.
The action reestablishes bitcoin at the peak of its five-week battle range, yet it does not breach it. The channel between $65,000 and $73,000, which has held firm through every rally and selloff since the onset of the conflict, continues to be intact. Resistance levels at $71,500 and $81,200, which align with the Lower Band and Trader On-chain Realized Price indicators highlighted in a report, loom above as significant hurdles if the current ceasefire momentum persists. The sustainability of this rally compared to the previous three hinges on the actualization of the 45-day ceasefire, or if it turns out to be yet another headline that fades away within 48 hours.