Bitcoin Price News: BTC Could Rise to $77K as Short Liquidations Near $500M

Bitcoin (BTC) has gone up by more than 4% in the past 24 hours alone after President Donald Trump agreed to a ceasefire with Iran for two weeks.

Oil has retreated by 16% today as a result of Trump’s decision and currently trades at $94 per barrel after hitting $117 at some point yesterday.

The head of state initially threatened to wipe out a “whole civilization” and gave Iran a deadline that expired yesterday to open the Strait of Hormuz or otherwise expect a “living hell”.

Bears Get Squeezed: Short Liquidations Explode to $470M

Market sentiment experienced a strong boost as a result, with the Fear and Greed Index currently sitting at 45 (Neutral), up from a recent low of 23.

Moreover, short liquidations spiked to $470 million just today, more than half of which belong to BTC positions. Bears are getting squeezed hard, and that could set the stage for a strong rally if prices keep rising.

Similarly, Bitcoin ETFs started the week with strong net inflows of $471 million on Monday, followed by net outflows of $159 million yesterday.

It seems that investors could be getting ready to jump back into crypto if market conditions improve. That said, the situation in Iran is still volatile, while analysts no longer expect a rate this year if oil prices stay at these levels.

Bitcoin Might Be Setting Its Eyes on the 200-Day EMA

Heading to the charts, we recently emphasized in our latest Bitcoin price prediction that the token bounced off a key trend line support, and we got a handful of buy signals as that happened.

Today’s jump further confirms this bounce and could set the stage for a rally toward $77,000, meaning an 8% upside potential.

The Relative Strength Index (RSI) has also jumped above 50, but still needs to go a bit higher to get a second confirmation of the rally.

This could be a simple reversion to the mean move, as the market could just be aiming to retest the 200-day exponential moving average (EMA). Nonetheless, if we break past $80,000 at some point, that might confirm the end of this bearish cycle and put Bitcoin on course to much higher levels.

A Second BTC Buy Signal Confirmed that Institutional Volumes Are Backing This Rally

Heading down to the 4-hour chart, our long position on BTC is in positive territory. This trade offers a 2.2x risk-reward ratio if you entered at $69,600 – the price level at which BTC traded back when we published that article.

However, we suggested that patient traders would have waited for a much better entry, and those who followed that recommendation got a better deal as BTC dropped near $68,000 at some point just a few hours later.

In this case, an entry at $69,000 would offer a 2.9x risk-reward ratio, with a TP set at $77,000.

We got a second buy signal today, right before BTC exploded. As we have mentioned previously, these are “decisional” candles that feature a specific pattern and above-average trading volumes.

They tend to identify institutional and whale participation when the price moves above or below certain key levels. In this case, it appears that whales are behind this trend line bounce, which makes this a “high-conviction” trade.