Bitcoin Rebounds to $69K as Ceasefire Hopes Trigger $196M Short Squeeze

Bitcoin opened the week with renewed momentum, climbing 3% to $69,120 as traders returned from the Easter break to improving geopolitical sentiment. The move marks the asset’s strongest level in over a week and was fueled largely by hopes of a potential ceasefire involving Iran.

The rally wasn’t isolated. Ethereum outperformed major assets with a 3.7% gain to $2,130, while Solana rose 2% to $82. XRP added 2.2% to $1.34, and Dogecoin edged up 1.7% to $0.093. Together, the surge pushed the total crypto market capitalization back above $2.5 trillion.

Driving the shift in sentiment were reports that the United States, Iran, and regional intermediaries are exploring terms for a temporary 45-day ceasefire that could potentially evolve into a longer-term resolution of the ongoing conflict. Additional signs of easing tension—such as increased shipping activity through the Strait of Hormuz—helped reinforce market optimism.

Still, the geopolitical backdrop remains fragile. Donald Trump added uncertainty by issuing fresh threats targeting Iran’s infrastructure, highlighting how quickly sentiment could reverse.

Market positioning amplified the move. Over the past 24 hours, roughly $273.8 million in leveraged positions were liquidated, with short traders accounting for nearly $197 million—almost three times the losses seen on long positions. One notable event included a $10.17 million ETH-USDT short liquidation on Binance.

Bitcoin’s price swung sharply between $66,634 and $69,350 during the session, a range that punished traders who had leaned heavily bearish following last week’s downturn. Data from Santiment showed social sentiment had turned deeply negative over the weekend—historically a setup for contrarian rallies.

Despite the rebound, Bitcoin remains confined within its broader range between $65,000 and $73,000, a channel that has held throughout the recent conflict-driven volatility. Key resistance levels now sit around $71,500 and $81,200, which could determine whether this rally evolves into a sustained breakout.

For now, the market’s next move hinges on whether ceasefire discussions translate into real progress—or fade as quickly as they emerged.