Bitcoin price traded above $76,500 today, holding on to recent gains despite rising geopolitical tension. Bitcoin fell back towards $75,000 in the weekly close and over the weekend as renewed tensions between the US and Iran rattled markets and refocused attention on oil prices.
The pullback followed a failed breakout above $78,000, which had marked Bitcoin’s ten-week high. The move higher came after a brief easing of geopolitical risk as Iran signaled the Strait of Hormuz was open. This shift sent crude oil lower and lifted risk assets, including crypto. The rally reversed as reports emerged that the waterway had been closed again, raising the prospect of tighter global oil supplies.
“Bitcoin finally broke out of its multi-week range last week, now trading around $75,000, and finally breaks the all-important $74,000 as $530 million in shorts were squeezed by positive developments around the Strait of Hormuz,” Bitfinex analysts wrote to Bitcoin Magazine.
The Strait of Hormuz handles a significant portion of the world’s oil shipments, and any disruption tends to drive energy prices higher. Oil rallied back towards the high-$80 range after the renewed close, adding pressure to inflation expectations and risk markets. Bitcoin price, which has tracked macro conditions throughout the conflict, gave up gains as sentiment shifted.
“The sustainability of a move higher [for bitcoin] now depends on geopolitics as the US-Iran ceasefire expires on April 21 unless a solution is found that leaves upcoming negotiations in the driver’s seat and determines whether this outbreak evolves into a continuation or a failure,” Bitfinex analysts note.
Market data shows the reversal triggered a wave of liquidations. More than $250 million in crypto positions were wiped out over a 24-hour period, which is how long the head took after the failed push higher. The relaxation followed a major short squeeze earlier in the week when the Bitcoin price’s rise above $76,000 forced bearish bets out of the market.
Traders remain focused on key technical levels. Bitcoin price continues to face resistance near its 21-week exponential moving average, which is just below $79,000. Analysts say rejection at that level raises the risk of a retest of support near $73,000, an area linked to a previous double bottom formation.
Derivatives positioning also points to increased volatility. Roughly $7.9 billion in Bitcoin options expire this week, with large open interest clustered around the $75,000 strike. This level can act as a pivot zone where dealer hedging flows can amplify price swings in either direction.
Bitcoin price sentiment is bullish
Despite the recent pullback, the broader sentiment has not completely reversed. Funding rates in perpetual futures remain negative, signaling that short positioning is still elevated. This leaves room for further pressure if prices hold above key support levels.
At the same time, macro drivers remain dominant. Bitcoin’s recent price action has shown sensitivity to headlines linked to the conflict and energy markets. Any sustained rise in oil prices could reinforce inflation concerns and delay expectations for looser monetary policy, a backdrop that has weighed on crypto demand in recent months.