Bitcoin rose above $71,000 again after the U.S. government, led by President Donald Trump, sent a proposal to Iran aimed at ending the war.
Bitcoin BTCR$ 371.608 rose above $71,000 again during the early Asian trading session on Wednesday, after the Trump administration presented a 15-point plan to Iran to end the conflict, generating short-term optimism in risk assets.
Bitcoin rises 4% with ceasefire expectations
Data from TradingView shows that the price of BTC rose up to 4%, reaching an intraday high of $71,300 from the low of $68,890 recorded on Tuesday, recovering all losses from the previous day.
1-hour chart of BTC/USD. Source: Cointelegraph/TradingView
The movement reacted to the news that the U.S., through the chief intermediary, Field Marshal Syed Asim Munir (head of the Pakistani Army), sent Iran a 15-point plan to end the war.
Key points of the plan include a temporary ceasefire, demands for Iran to dismantle or severely limit its nuclear program, suspend its ballistic missile development, and fully reopen the Strait of Hormuz for safe maritime traffic.
Source: X/The Kobeissi Letter
Meanwhile, Iran continues to deny any ongoing negotiations, while Trump postponed his self-imposed deadline for Tehran to reopen the Strait.
After the news, WTI oil fell 5.75% to $87 per barrel, while Brent retreated 6%, trading at $98.
Oil price table. Source: Oil Price.com
Gold extended the previous day's gains, rising 2.53% and trading at $4,561 at the time of publication.
This movement reduces inflationary fears related to the disruption of maritime routes in the Strait of Hormuz, positively impacting risk assets, including Bitcoin.
Analysts highlighted the rapid repricing, with Coinlore stating that Bitcoin is behaving like a “real-time sentiment instrument for global risk.”
CryptoQuant analyst Axel Adler Jr stated that BTC “will likely continue to react to headlines” until the U.S. and Iran issue a “public sign of de-escalation.”
Bitcoin price faces “tough times ahead”
Despite the recovery, the BTC high seems limited in the $72,000 region, where the 50-day exponential moving average and the upper line of a symmetrical triangle converge.
A breakout above $72,000 would confirm a bullish breakout, with a projected target of $92,400, about 30% above the current price.
Daily BTC/USD chart. Source: Cointelegraph/TradingView
Glassnode's average price distribution map shows a concentration of supply and resistance between $72,000 and $74,000, where investors acquired about 380,000 BTC in the last 30 days—indicating that sellers may aggressively defend this region.
On the negative side, there is a strong accumulation cluster around $65,000, where about 160,000 BTC were previously acquired.
This level coincides with the lower line of the symmetrical triangle, whose loss could trigger the next leg down towards the bearish target of $52,500.
Meanwhile, the macro Bitcoin index from Capriole Investments dropped to -1.37, levels seen at the bottom of previous bear cycles.
The chart indicates that this metric historically remains at these levels for about a year before recovering.
“Bitcoin Macro index is in the value zone,” stated Charles Edwards in a post on X, adding:
“On all previous occasions, the price dropped further before recovering, suggesting we may still face tough times.”
Macroeconomic Index of Bitcoin. Source: Capriole Investments.
As reported by Cointelegraph, traders warn of a possible second bearish flag breakout, which could pave the way for a new drop below $50,000.
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