Bitcoin began to retreat from its 13-week highs as soon as it began trading on Wall Street on Wednesday, following mixed news about a possible ceasefire agreement between the United States and Iran. BTC/USD parity broke a local record by rising to $ 82,833 on the Bitstamp exchange. However, the price lost momentum due to geopolitical developments before exceeding this limit.
Geopolitical developments affected pricing
In the news during the day, it was stated that a 14-article ceasefire agreement could be signed between the USA and Iran and that this agreement could include the resumption of oil transportation through the Strait of Hormuz. However, this news quickly became uncertain. US President Donald Trump has not been specific about whether Iran will fully comply with the agreement. In his post on Truth Social, he said:
“If Iran does not accept the agreement, the bombardment will begin with a much higher intensity than in the previous period.”
He stated: Following this statement, the Bitcoin price gave back some of its gains and fell to $ 81,500 in the minutes when the news was written, but maintained its rise of around 1 percent throughout the day.
The impact of geopolitical developments was not limited to the cryptocurrency market. There were also sharp fluctuations in the oil market. While the barrel of West Texas Intermediate (WTI) crude oil fell by more than 10 percent in a few hours, it recovered again and reached up to 96 dollars.
Fluctuation in the market, liquidations came to the fore
According to market data, short positions in WTI futures approached $1 billion just before the decline. These unusually large short positions were drawn to attention by The Kobeissi Letter on social media platform X.
Increasing volatility in the cryptocurrency market brought about mass liquidations. While a total of more than $550 million in crypto positions were liquidated in the last 24 hours, $400 million of this consisted of short positions.
Some experienced Bitcoin investors drew attention to this activity in the order books of the exchanges. It was stated that there is still some liquidity, especially at the $ 82,400 level, but with the recent fluctuation, the recent liquidity has been largely depleted. People interested in technical analysis suggested that the course of the price should be evaluated from a broader perspective as the three-month peak was reached.
According to analysts, a possible correction is at the door
Some investors have pointed out that Bitcoin may be overvalued in the short term. In particular, a trader named CrypNuevo drew attention to the 50-period simple moving average (SMA) on the four-hour chart and suggested that the price could retreat to $78,432. Technical data shows that strong buying must continue for Bitcoin to maintain its momentum.
While moving averages and liquidity zones are closely monitored, some market commentators agree that Bitcoin may enter a short correction period despite its rise in recent months.
Experts said, “The price has consumed most of the local liquidity in the last 24 hours. Since we are at a three-month peak, it is necessary to look at larger time frames to see the next important levels.” made his assessment.
In the analyzes previously reported by Cointelegraph, it was emphasized that this rise of Bitcoin may not be permanent as in historical examples and may pose a risk of a critical correction.
