Bitcoin successfully reclaimed the $72,000 support level for the second consecutive day, driven by fragile optimism over a preliminary US-Iran ceasefire agreement. After early volatility triggered by conflicting reports of ceasefire violations, the cryptocurrency surged roughly $2,000 in a few hours, hitting an intraday high of $72,571 by 1:00 PM ET.
Price Action: Two Dips to $70,500 Before Breakout
The session was far from smooth. Confusion over ceasefire terms initially pushed Bitcoin back to the $70,500 support zone twice. However, a decisive shift occurred after US officials confirmed that Israel and Lebanon would hold separate negotiations, alleviating fears of a complete collapse of the deal. The afternoon rally pushed Bitcoin's total market capitalization from a low of $1.41 trillion to $1.45 trillion, reflecting renewed risk appetite across broader markets. The Dow Jones, S&P 500, and Nasdaq all opened higher, each gaining nearly 1% during the session.
Liquidations Surge: Shorts Bear the Brunt
The price swings proved disastrous for overleveraged traders. According to Coinglass liquidation data, bearish traders were hit hardest, with $95 million in short positions forcibly closed over 24 hours. Combined with another $20 million in long liquidations, total market-wide liquidations reached $115 million. Bitcoin accounted for more than one-third of the $307 million in total crypto liquidations recorded during the period.
Options Market Eyes $80,000: Bulls Bet Big on June Expiry
Beneath the spot price volatility, the options market is signaling increasingly bullish long-term sentiment. Analysts note heavy activity around the $80,000 strike price for call options, with concentrated open interest on Deribit indicating that institutional and professional traders are betting not just on recovery but on significant expansion. Implied volatility is rising as the market braces for sharper price moves ahead of the June expiry, reinforcing a bullish outlook.
The fragile ceasefire in the Middle East has provided a strong tailwind for Bitcoin, but the scale of liquidations serves as a cautionary reminder of ongoing volatility risks. With options pricing in a possible break above $80,000, the coming weeks will be critical for Bitcoin's next directional move.