Bitcoin (BTC) cooled from new 13-week highs at Wednesday’s Wall Street open amid mixed signals over a US-Iran peace deal.
Key points:
- Bitcoin stops short of tapping $83,000 as momentum becomes guided by geopolitical developments.
- Oil sees flash volatility around rumors of the Strait of Hormuz opening.
- Bitcoin trader sees a price reset to a $78,400 trend line.
Iran deal let-down sours Bitcoin’s attack on $83,000
Data from TradingView showed a new local peak for BTC/USD of $82,833 on Bitstamp.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
The pair made fresh gains amid reports of a 14-point ceasefire agreement potentially coming into effect — one that would include resumption of oil traffic through the Strait of Hormuz.
Hours later, however, US President Donald Trump said that Iran’s agreement to the terms of the truce was “perhaps, a big assumption.”
“If they don’t agree, the bombing starts, and it will be, sadly, at a much higher level and intensity than it was before,” he added in a post on Truth Social.
Source: Truth Social
Bitcoin reacted by erasing its upside to circle $81,500 at the time of writing, still up around 1% on the day.
Oil also saw volatility, with WTI dropping over 10% in a matter of hours before rebounding to $96 per barrel.
CFDs on WTI crude oil one-hour chart. Source: Cointelegraph/TradingView
Commenting on X, trading resource The Kobeissi Letter reported what it called “unusually large” short interest on WTI, which totaled nearly $1 billion, immediately before the drop.
Light crude oil futures chart. Source: The Kobeissi Letter/X
BTC price focus switches to $78,000 and higher
Bitcoin traders, meanwhile, looked to patches of potential liquidations on exchange order books for clues as to where price might head next.
Related: Bitcoin can crash to $50K if ‘most critical’ bear market test fails: Analysis
“Above, the $82.4K area still has some left. But price did take out most of the local liquidity from the past day. With price at 3 month highs, we would need to zoom out to see the other major levels,” trader Daan Crypto Trades told X followers.
“Below, the $80.1K & $78.2K levels are good to watch if price were to trade into them.”
Crypto liquidation history (screenshot). Source: CoinGlass
Data from CoinGlass put total crypto liquidations over the past 24 hours at more than $550 million, with shorts accounting for $400 million of the total.
Trader CrypNuevo called BTC/USD “overextended” on short time frames, seeking a retracement to the 50-period simple moving average (SMA) on the four-hour chart. That stood at $78,432.
“Ideally it continues pushing straight higher without any exhaustion signs and it will overextend price even more so the short will be more atractive and worth it when we see those signs at higher prices,” he wrote on X.
BTC/USD four-hour chart with 50SMA. Source: Cointelegraph/TradingView
Earlier, Cointelegraph reported on concerns that historical precedent called for the failure of Bitcoin’s current breakout attempt.
