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BTC USD Price Runs Toward $72,000 as Middle East Tensions Cools: $160M in Shorts Liquidated

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BTC USD Price

The Bitcoin price is ripping. BTC USD price reclaimed $71,000 this afternoon, erasing weekly losses as reports of postponed Iranian strikes triggered a massive risk-on pivot. The sudden reversal caught bears offside, triggering over $160 million in short liquidations in just a few minutes.

Markets were pricing in immediate war escalation over the weekend. Trump’s ultimatum to reopen the Strait of Hormuz initially sent Bitcoin sliding below $67,000, tightly correlating digital assets with broader geopolitical risk. But the announcement of a five-day delay in strikes alleviated immediate fears, allowing capital to rotate aggressively back into risk assets.

The relief rally was violent. Traders who front-ran the “war trade” by shorting were forced to cover, fueling a classic short squeeze. While the situation remains volatile, the immediate market analysis suggests the panic discount has been fully repriced. The Fear and Greed Index has flipped back from Fear to Greed in a matter of hours.

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Can BTC USD Reclaim $72,000 Price Resistance?

Bitcoin is trading at $71,450, hammering against the psychological $$72,000 barrier. The recovery from the $67,000 lows confirms strong demand at the 50-day EMA, a level that has acted as a springboard for previous legs up. The RSI on the 4-hour chart has reset from oversold territory and is now pushing neutral 52, leaving room for further upside.

Bulls need to see a daily close above $71,500 to confirm this is a resumption of the uptrend rather than a dead-cat bounce. If that level breaks, the path to the $74,000 annual high is clear. Conversely, a rejection here could see prices retest the key support levels around $67,500.

  • Bull Case: A clean break and close above $72,000 targets $74,700 next.
  • Bear Case: Failure to hold $68,500 risks a flush back to liquidity pools at $66,200.

Until $67,500 is lost, bulls are in control of the immediate trend.

BTC USD Price
BTC USD Price, TradingView

$160M in Shorts Wiped in Minutes

CoinGlass data reveals that over $160 million in BTC USD short positions were liquidated as the price blasts above $71,000. This indicates that positioning was overly bearish, anticipating a deeper flush from the Hormuz crisis, which never materialized.

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Funding rates have begun to tick upwards, suggesting leverage is re-entering the system on the long side. However, open interest is yet to reclaim its yearly highs, implying this rally is driven more by spot demand and short covering than by frothy leverage. This is a healthy signal for sustainability.

BTC USD Price
BTC USD liquidation, Coinglass

Traders are now watching the $71,200 level closely. With Trump’s influence on the geopolitical narrative still a wild card, any headline regarding the expiration of the five-day pause could reintroduce volatility.

BTC USD Price Is Bullish, And Investors Are Ready to Rotate to Infrastructure as Hyper Targets SVM Scalability

While spot Bitcoin finally breaks the $70,000 barrier, smart money creates a noticeable trend of capital rotation into high-beta infrastructure plays. Investors often hedge against mainnet chop by allocating to Layer 2 protocols that promise to solve Bitcoin’s velocity constraints.

The project has followed the market sentiment, amassing an impressive $32 Million in its ongoing presale. Bitcoin Hyper aims to deliver sub-second finality and high-speed smart contracts directly to the Bitcoin ecosystem, effectively bridging the gap between Bitcoin’s security and Solana’s speed. $HYPER is currently priced at $0.0136 with 36% APY on staking rewards.

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This massive fundraising milestone indicates that investors are rotating toward infrastructure capable of unlocking trillions in dormant BTC capital.

Find Bitcoin Hyper here.

The post BTC USD Price Runs Toward $72,000 as Middle East Tensions Cools: $160M in Shorts Liquidated appeared first on Cryptonews.

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Crypto World

Bitcoin Spot Volumes Drop To 2023 Lows as Rallies Lack Spot Conviction

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Coinbase, Cryptocurrencies, Bitcoin Price, Markets, Cryptocurrency Exchange, Bitcoin Futures, Binance, Price Analysis, Market Analysis

Bitcoin (BTC) spot volumes on Binance have dropped to their lowest level since September 2023, indicating that the current intraday price rise may not be backed by strong demand.

The rally above $71,700 on Monday appears to be driven mainly by news headlines and liquidations in the Bitcoin futures markets.

Binance volumes and exchange flows signal the demand gap for BTC

Crypto analyst Darkfost said that March is on track to record the lowest Binance spot volume since Q3 2023, at roughly $52 billion, compared to the $88 billion recorded in September 2023. The activity levels align with the prior bear market conditions, pointing to the reduced participation.

Coinbase, Cryptocurrencies, Bitcoin Price, Markets, Cryptocurrency Exchange, Bitcoin Futures, Binance, Price Analysis, Market Analysis
BTC spot trading volume. Source: CryptoQuant

The exchange flow data shows a similar slowdown. Crypto analyst Arab Chain reported $6.38 billion in seven-day cumulative flows on Binance and $5.14 billion on Coinbase. The Binance flows have dropped to the lowest level since 2024, indicating reduced deposit activity.

However, the lower inflows may also coincide with a reduced supply to sell, as fewer coins move onto the exchanges. The Coinbase flows remain relatively stable, reflecting the steadier participation from the long-term investors.

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The large-holder activity added another layer. Market analyst Gaah identified a record surge in the whale inflow momentum, which tracks the rate of change in large transfers to the exchanges.

The current reading of 74.3 surpasses all prior cycle peaks over the past 11 years, with a higher level last recorded at 124.6 in 2015. 

The elevated inflow velocity signals an aggressive capital rotation and hedging, increasing BTC’s sensitivity to short-term volatility over the next few weeks.

Coinbase, Cryptocurrencies, Bitcoin Price, Markets, Cryptocurrency Exchange, Bitcoin Futures, Binance, Price Analysis, Market Analysis
Bitcoin momentum whale inflow ratio. Source: CryptoQuant

Related: Bitcoin rebounds to $71K as oil drops after Trump signals pause on Iran strikes

Bitcoin liquidation activity shows traders lack conviction

The BTC rally followed reports that President Trump had deferred the planned US strikes on Iran’s energy infrastructure for five days after citing progress in the diplomatic discussions, a claim later rejected by Iran’s foreign ministry, which denied that any talks had taken place.

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BTC still pushed to a weekly high of $71,789 on Binance during the US market session, driven by the above external catalyst rather than by spot demand or futures positioning, leading the move.

Data shows the rally coincided with a reduction in leverage. The aggregated open interest declined by about 9,700 BTC, marking a 4% drop over 13 hours.

The open interest tracks the total number of active futures contracts, and the decline during a price increase signals that the positions were being closed rather than new ones being opened.

BTC/USDT price, aggregated open interest, liquidation, and Coinbase premium. Source: velo.data

This type of move typically occurs when short positions are forced out of the market, reducing the total exposure while pushing the price higher. Binance recorded over $44 million in short liquidations within one hour, the largest since the one-hour long liquidations of $53 million on Feb. 6.

The Coinbase premium (in percentage terms) remained negative during the move, indicating limited spot demand from US participants.

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The falling open interest, high liquidations, and weak premiums suggest the move higher was driven by positions being closed rather than new money entering the market, with most of the activity clustered around the $71,000–$72,000 range.

Related: Gold slides as traders eye sub-$50K BTC: Five things to know in Bitcoin this week