During trading in the US, bitcoin briefly rose to new 13-week highs, but the market failed to hold above $83,000.
Sentiment quickly shifted after the latest news on Iran, and uncertainty around a possible truce prompted some traders to start taking profits.
After new comments on Iran, bitcoin almost immediately pulled back from above $83,000. According to TradingView, bitcoin on the Bitstamp exchange started rising to a local high of $82,833.
BTC/USD one-hour chart. Source: TradingView
Bitcoin started rising after reports of a possible ceasefire between the US and Iran. Among the discussed terms was the restoration of oil supplies through the Strait of Hormuz.
But later Donald Trump cooled market optimism, making it clear that there is still no confidence in a deal with Iran.
“If they do not agree, the bombings will continue. And unfortunately, they will be much larger and tougher than before,” he wrote on Truth Social.
After these words, BTC quickly pulled back from local highs and returned to the area of $81,500.
Oil was extremely volatile at this time. WTI lost more than 10% in just a few hours, then rebounded to $96 per barrel.
WTI oil futures one-hour chart. Source: Cointelegraph/TradingView
Analysts from The Kobeissi Letter wrote about an unusually large volume of short positions on WTI right before the price drop. According to their data, the volume of oil shorts reached almost $1 billion.
WTI light crude oil futures chart. Source: The Kobeissi Letter/X
The Market Is Now Watching Zones Around $78,000
Meanwhile, market participants continue to watch liquidation zones on exchanges to understand where BTC could stop during a pullback.
Trader Daan Crypto Trades wrote on X that there are still large liquidity zones above the market around $82,400.
“The price has already taken out most of the local liquidity that accumulated over the past day. But bitcoin is now trading at three-month highs, so to find the next major levels, you have to look at a wider chart,” he noted.
At the same time, the analyst highlighted the zones of $80,100 and $78,200 as important areas the market is currently watching.
Crypto market liquidation history. Source: CoinGlass
Over the past day, more than $550 million in positions were liquidated on the crypto market. Of this amount, about $400 million were short positions.
Trader CrypNuevo, meanwhile, believes that on shorter timeframes, BTC/USD already looks overheated. In his opinion, the market looks ready for a small pullback. Right now, this level is around $78,432.
“Ideally, the price could keep rising for a while without serious reversal signals. Then the market will become even more overbought, and a short will look much more attractive at higher levels,” he wrote on X.
BTC/USD four-hour chart with 50 SMA. Source: TradingView
