Bitcoin Nears $70K On US-Iran Ceasefire Talks, $270 Million Shorts Wiped Out

• The overall cryptocurrency market rose 3.6% in the last 24 hours, but remained below the $2.5 trillion mark. 
• The rally came after Axios reported that the U.S. and Iran are discussing a potential 45-day ceasefire. 
• Retail traders on Stocktwits remained cautious, with some warning the rally could be a ‘bull trap’.

Bitcoin climbed toward $70,000 in early trade, extending gains amid a broader weekend crypto rally following a report that the U.S. and Iran are discussing a potential 45-day ceasefire.

Bitcoin’s price rose over 4% in the last 24 hours to around $69,700, according to CoinGecko data. Retail sentiment on Stocktwits around the apex cryptocurrency trended in ‘bearish’ territory over the past day, while chatter rose to ‘normal’ from ‘low’ levels. 

The overall cryptocurrency market rose 3.6% in the last 24 hours, but remained below the $2.5 trillion mark. CoinGlass data showed the sudden uptick wiped out $342 million in crypto bets over the past day. Most of the liquidations came from short bets, amounting to around $273 million. 

Crypto Rally Gains Pace On U.S.-Iran Ceasefire Hopes

According to a report by Axios, the deal is not final yet, but the ceasefire could result in a permanent end to the war. It came after President Donald Trump, in a post on Truth Social, extended his deadline for a deal with Iran on Sunday by 20 hours. He reportedly said that the U.S. is in “deep negotiations” with Iran in order to reach a deal before the deadline expires. 

Crude oil prices dipped following the news, with Brent crude oil prices down 0.68% on the day and West Texas Intermediate (WTI) crude oil prices down 1.38% The United States Oil Fund (USO) dipped 0.77% in pre-market trade, with retail sentiment falling to ‘bearish’ from ‘neutral’ territory over the past day. Chatter remained at ‘high’ levels.

Retail Traders Flag ‘Bull Trap’ Risks

Many users on the platforms expressed caution. One retail trader on Stocktwits said that Bitcoin’s current rally is likely to be a “bull trap” and anticipated that Bitcoin’s price is likely to drop to $62,000 in the near term.

Another said Bitcoin’s rally feels more like a “fakeout than a breakout.”

Macro Risks Could Drive Volatility This Week

According to crypto analyst Ted Pillows, Bitcoin is currently trading in the resistance zone between $69,000 and $70,000. “If Bitcoin remains in this zone, a rally towards the $72,000-$74,000 could happen,” he wrote in a post on X. 

Other analysts believe that macro factors such as the U.S.-Iran war may bring volatility to the cryptocurrency market this week. “Volatility picking up, and I think it's fireworks during this week as we might be getting to the end stage of the entire situation in the Strait of Hormuz,” said MNFund founder and chief investment officer Michael van de Poppe in a post on X. 

Ethereum, Cardano Outperform Bitcoin

Among the top 10 cryptocurrencies by market capitalization, Cardano (ADA) and Ethereum (ETH) outperformed Bitcoin on Monday morning. Cardano’s price rose 6.2% in the last 24 hours to around $0.25, while Ethereum’s price rose 5.3% to around $2,150. 

Retail sentiment on Stocktwits around both altcoins remained in ‘bearish’ territory over the past day but Cardano saw ‘high’ levels of chatter, while message volumes around Ethereum stayed at ‘normal’ levels. 

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