On April 13, 2026, Bitcoin staged a dramatic rally towards the $75,000 level after President Trump ordered a blockade of the Strait of Hormuz, escalating US-Iran tensions and triggering a massive short squeeze in the crypto market. BTC rebounded from an Asian morning low of $70,741 to reach intraday highs above $74,900, a gain of more than 5.8% within hours.
Short Squeeze Fuels Rapid Ascent
Within hours of the blockade announcement, millions of dollars in short positions were liquidated as buyers stepped in near support around $70,000, accelerating the upward move. Funding rates had turned negative in the preceding days, indicating that short positions had become overcrowded before the weekend. Trump ordered the closure of the Strait of Hormuz—a critical chokepoint for global oil shipments—after US-Iran ceasefire negotiations collapsed over the weekend. The news initially pressured risk assets before traders rotated into Bitcoin and other hedges.
The price action tested the upper boundary of Bitcoin's two-month consolidation range, which has roughly spanned $65,000 to $75,000 since February. This range represents a period of choppy trading following Bitcoin's all-time high above $126,000 in October 2025. Spot Bitcoin ETFs have experienced renewed inflows through March and April, providing underlying demand behind the leveraged-fueled rally. Institutional buying via ETFs has been one reason support around $68,000 to $70,000 has held during multiple retests.
Macro Risks Persist; $75,000 Key Resistance
Broader macroeconomic conditions have complicated Bitcoin's upward trajectory. Rising oil prices from Middle East tensions have amplified inflation concerns, which could delay Federal Reserve rate cuts. Any relief in geopolitical pressure or shifts in Fed expectations have typically propelled BTC higher within days. Earlier in April, Bitcoin posted a gain near $70,000 after reports of a potential US-Iran ceasefire, before the weekend collapse erased that momentum.
Historically, April has been a positive month for Bitcoin. Since 2013, Bitcoin has closed higher in April roughly 69% of the time. The 2026 edition has been volatile, pressured by lingering macro headwinds and aftershocks from last year's price decline. So far in Q2 2026, Bitcoin is up 8.64%. Technically, the $75,000 level carries significance. A large short position has built up around $73,000 to $75,000, making any sustained move above that zone a potential catalyst for further short squeezes. Several trading desks cite $75,000 as a resistance level that, if broken with strong volume, could open the path towards $80,000.
Tax Selling vs. Institutional Accumulation
Downside risks remain. If price fails to hold above $72,000 to $73,000, it could pull back to $68,000. Tax-season selling ahead of the April 15 deadline could dampen spot demand in the short term. A broader sell-off in equities due to a geopolitical shock remains a risk traders are monitoring. Meanwhile, Strategy, the largest corporate Bitcoin holder, has continued to add BTC to its portfolio this year. The company bought 13,927 Bitcoin this week, now holding 780,897 BTC. This kind of institutional accumulation, combined with ETF inflows and legislative discussions around the CLARITY Act for clearer crypto rules, forms the structural thesis long-term holders cite.
At current prices around 19:30 ET, Bitcoin remains roughly 40% below its 2025 peak of $126,000. Analyst targets for end-2026 range from a conservative base near $75,000 to more optimistic forecasts above $100,000 if inflation cools and macro conditions improve. Traders will watch the $70,000 support level and the $75,000 resistance zone overnight as the most immediate signals for Bitcoin's next move.