Ethereum rose 4.4% to $2400. BNB added almost 2.9% (~$650), and Solana climbed 2.7% (~$88), writes forklog.com.
The volume of liquidations in the crypto market reached $480.3 million overnight, with the majority – $375 million – coming from short positions.
The macroeconomic background also became favorable: the S&P 500 rose by 0.8%, and the Nasdaq added 1.3%, updating a record high.
The growth followed a statement by US President Donald Trump. NYP quoted sources as saying that the head of the United States is ready to give Iran up to five days of truce to prepare for talks. The next meeting could take place on April 24-26.
However, Tehran has not yet made a final decision, writes the Tasnim news agency. Uncertainty remains around the situation in the Middle East. The US maintains the blockade, the Strait of Hormuz is still closed.
“Fragile” situation
QCP considers the bitcoin rally to be temporary and does not expect a change of trend. According to analysts, risk assets “feel more confident” only due to the extension of the truce and the position of the candidate for the post of head of the Fed Kevin Warsh, who confirmed the full independence of the agency.
Oil prices remain at levels around $100: markets have shifted from shock risk to assessing resilience. This fuels inflation, but at the same time reduces real incomes and weakens consumption, restraining growth, experts emphasized.
“Negative funding rates indicate an increase in short positions. Such positioning makes the market tactically vulnerable to short-squeezes, but does not indicate a decisive change in sentiment,” QCP noted.
The options market is also not confirming a confident breakout. Short-term volatility remains low and downside protection remains in demand.
Derivatives suggest consolidation rather than trend development – institutional players do not demonstrate strong confidence, experts summarized.
Important level
K33 also pointed to a rise in short positions, which increases the likelihood of short-squeeze. The head of research of the analytical company Vetle Lunde is more confident in the continuation of the rally of the first cryptocurrency.
“We continue to see strong breakout potential for BTC and concentrated short positions provide good fuel for growth,” he told Lunde.
However, the $79,000-80,000 zone poses a hurdle. It coincides with the realized price of short-term holders – this group of investors is most sensitive to volatility and is more likely to start selling on a rise.
CryptoQuant analyst Ignacio Moreno de Vicente also called the $80,000 level a “critical breaking point.”
He said the realized price of short-term whales (holders of one to six months) is at $79,600. Since Nov. 1, this group is in the negative. The current unrealized loss is $4.3 billion (30-day average is $9.4 billion).
“On January 15, as bitcoin approached $95,000, short-term whales who had recently returned to profitability used this window to exit. […] For these investors, $80,000 is not just a round number, but a psychological and financial threshold between relief and continued losses,” Moreno de Vicente explained.
A consolidation above $80,000 would turn resistance into support. A bounce back down would confirm that there is supply hanging on top, and the drawdown would drag on into the second quarter, he warned.
