Crypto assets began the week on a firmer note as reports of potential ceasefire talks between the U.S. and Iran boosted risk appetite, triggering a sharp unwind of bearish positions. In the past 12 hours, short liquidations have outpaced longs by nearly three-to-one.
Bitcoin climbed 3% to $69,120, reaching its highest level in over a week as traders returned from the Easter break to improved sentiment. The move forced the liquidation of approximately $196 million in short positions over the past 24 hours, highlighting how crowded bearish bets had become.
Altcoins followed suit, with Ether leading the advance—up 3.7% to $2,130, marking its strongest daily gain in a week. Solana rose 2% to $82, XRP gained 2.2% to $1.34, and Dogecoin increased 1.7% to $0.093. The broader rally lifted total crypto market capitalization back above the $2.5 trillion threshold.
The catalyst was an Axios report indicating that the U.S., Iran, and regional intermediaries are discussing a potential 45-day ceasefire that could eventually transition into a more permanent resolution to the six-week conflict.
Market data reveals traders were heavily positioned for downside heading into the weekend. Of the $273.8 million in total liquidations across more than 81,000 traders, $196.7 million came from short positions, compared to $77.1 million from longs. The largest single liquidation was a $10.17 million ETH-USDT short on Binance.
Bitcoin traded within a wide $2,700 range over the past 24 hours, fluctuating between $66,634 and $69,350—volatility that intensified the squeeze on short sellers.
Sentiment metrics from Santiment showed social media had turned decisively bearish over the weekend, marking its most negative skew since the conflict began. With roughly five negative posts for every four positive ones, the extreme pessimism created conditions for a contrarian rebound.
Even after the rally, Bitcoin remains confined within its five-week trading range between $65,000 and $73,000. Resistance levels at $71,500 and $81,200—linked to Lower Band and Trader On-chain Realized Price indicators—represent the next key hurdles if momentum continues.
The sustainability of the move will depend on whether ceasefire discussions lead to tangible progress or fade as another short-lived geopolitical headline.
