Bitcoin climbed to its highest level in 13 weeks on Wednesday before pulling back sharply after President Donald Trump poured cold water on reports of a US-Iran peace deal.
The pair hit a local peak of $82,833 on Bitstamp, driven by reports of a 14-point ceasefire agreement that would have reopened oil traffic through the Strait of Hormuz.
Iran deal doubt kills the rally
The optimism was short-lived.
Trump described Iran’s agreement to the ceasefire terms as:
“Perhaps, a big assumption.”
He then escalated the rhetoric on Truth Social, warning:
“If they don’t agree, the bombing starts, and it will be, sadly, at a much higher level and intensity than it was before.”
Bitcoin erased its gains and fell back to around $81,500, still up roughly 1% on the day.
Oil markets were hit harder, with WTI crude dropping over 10% in a matter of hours before rebounding to $96 per barrel.
Trading resource The Kobeissi Letter flagged what it called “unusually large” short interest on WTI totaling nearly $1 billion immediately before the drop.
Traders eye $78,000 as next key level
With bitcoin pulling back from three-month highs, traders began watching lower support zones on exchange order books.
Trader Daan Crypto Trades told his X followers:
“Below, the $80.1K & $78.2K levels are good to watch if price were to trade into them.”
Trader CrypNuevo described BTC as “overextended” on short timeframes and flagged the 50-period simple moving average on the four-hour chart as a likely retracement target, sitting at $78,432.
He noted:
“Ideally it continues pushing straight higher without any exhaustion signs and it will overextend price even more so the short will be more attractive and worth it when we see those signs at higher prices.”
Liquidations pile up
Data from CoinGlass put total crypto liquidations over the past 24 hours at more than $550 million, with short positions accounting for $400 million of that total.
