Bitcoin price briefly reclaimed levels above $72,000 after the United States and Iran agreed to a provisional two-week ceasefire.

Over the past 24 hours, the bellwether crypto asset has risen over 6.7% to hit an intraday high of $72,379 for the first time since March 18.

Yesterday’s move marked one of the largest single-day recovery sessions this year as the news broke, which helped ensure that risk sentiment returned to the global markets.

The relief followed weeks of escalating tensions during which US President Donald Trump threatened back-to-back strikes targeting critical Iranian infrastructure, including power plants and the Kharg Island bridge.

Iranian leaders, on the other hand, were initially hesitant about the proposed terms and reopening the Strait of Hormuz.

Hormuz has become the focal point of the conflict, as the blockade currently enforced by Iran has sparked panic across the entire global energy economy, sending oil prices to multi-year highs.

However, on Tuesday evening, Trump said that Iranian negotiators had submitted a 10-point proposal hours before his 8 p.m. ET deadline and, as such, the US has also agreed to "suspend the bombing and attack of Iran for a period of two weeks.”

Iran has also agreed to the conditional pause, suspending hostilities and fully opening the Strait to commercial shipping traffic for the duration of the talks.

Bitcoin price surged within the hour following the announcement, including select altcoins, which also rallied as tensions eased.

Although Bitcoin price has reclaimed a key psychological support zone above $70,000, its trajectory over the coming weeks would depend on how the negotiations between Washington and Tehran unfold over the coming weeks and on whether Iran permanently opens up shipping lanes.

US and Iranian officials are expected to meet to try to reach a permanent armistice.

However, in the short term, the ceasefire is bound to offer some relief and optimism; a rally towards $75,000 and beyond should not be ruled out, especially as oil prices have fallen below the $100 mark for the first time in days.

Bitcoin’s short-term bullish structure now depends on its ability to hold above $70,000 and sustained demand from retail and institutional buyers alike.

In the meantime, spot Bitcoin ETFs have once again turned negative, with $159.05 million flowing out of the products on Tuesday, after starting the week with positive momentum.

However, the road ahead remains paved with technical hurdles that Bitcoin must clear to confirm a true trend reversal. 

While the RSI (Relative Strength Index) has bounced back from oversold territory, Bitcoin still faces significant resistance near the $73,500 level, which has acted as a brick wall throughout late March.

Meanwhile, any sign of friction between the US and Iranian delegations could easily trigger a sell-the-news event, which could drag the price back to test the $68,000 support level.

The post Bitcoin reclaims $72,000 as US-Iran ceasefire sparks relief appeared first on Invezz

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