Bitcoin climbed sharply during Tuesday’s New York session, reaching around $72,700 after oil prices dropped below $100 per barrel following confirmation of a two-week ceasefire between the United States and Iran.

The price of BTC rebounded roughly 7%, recovering from a recent low near $67,274 and erasing losses accumulated over the past 20 days. This marked the first time Bitcoin traded above $72,000 since mid-March.

The move was closely tied to geopolitical developments, particularly US President Donald Trump confirming the temporary ceasefire, which is contingent on the “complete, immediate, and safe opening” of the Strait of Hormuz.

“Geopolitics moves crypto faster than any TA. One post from Trump and billions flow back into markets,” analyst Mr Brondor said in response to Bitcoin’s reaction following the news.

Short liquidations amplify the move

The rally triggered a wave of liquidations across the crypto market, with more than $431 million in short positions wiped out over the past 24 hours. Of that total, approximately $214.8 million came from Bitcoin shorts.

Overall, liquidations across the broader crypto market reached around $610 million during the same period, reflecting the scale of the sudden upward move.

At the same time, energy markets reacted in the opposite direction. Oil prices, which had previously surged to between $110 and $118 per barrel amid the conflict, dropped as much as 16%, falling to around $92 before stabilizing closer to $95.

Key resistance levels still in focus

Despite the strong rebound, analysts caution that the broader market structure remains uncertain. According to trading firm QCP Capital, the current rally may depend heavily on upcoming macro and geopolitical developments.

“Hormuz reopening is conditional, infrastructure damage has already occurred, and Friday’s talks will need to deliver tangible progress,” the firm noted, adding: “For now, the key question is whether that relief rally can hold through the next cluster of catalysts, including Fed minutes, CPI, and the first real diplomatic test of this two-week pause.”

Market participants also remain focused on key resistance levels between $72,000 and $76,000. Some traders warn that Bitcoin must decisively break above this range to confirm a sustained trend reversal.

Some traders continue to point to the possibility of a deeper correction toward historically significant levels, including the 200-week moving average and the realized price, which have often marked previous bear market bottoms.

Sources:

https://cointelegraph.com/markets/oil-falls-bitcoin-jumps-dollar72k-is-btc-price-breakout-for-real

https://truthsocial.com/@realDonaldTrump/posts/116365796713313030

https://x.com/MrBrondorDeFi/status/2041651539144761626

https://x.com/CryptoJelleNL/status/2041771672613576710

https://www.qcpgroup.com/insights/qcp-market-colour-11/

https://x.com/CryptoPatel/status/2041735033476517937

https://www.tradingview.com/symbols/BTCUSD/

https://www.tradingview.com/symbols/WTIUSD/