Bitcoin has climbed back above $65,000 after a US-Iran peace agreement eased one of the biggest macro risks that had weighed on crypto markets for months.

According to US President Donald Trump, negotiations with Iran have concluded and resulted in an agreement that includes the immediate removal of the US Navy blockade and the reopening of the Strait of Hormuz without toll charges. 

Pakistan and Qatar helped facilitate the talks, which ended a 106-day conflict that had disrupted global markets and pushed energy prices higher.

Markets reacted quickly. Bitcoin surged from around $64,000 to above $65,500 within hours of the announcement, extending gains after US inflation data provided an additional boost.

CoinGecko data showed Bitcoin trading near $65,600, up about 2% over 24 hours.

Beyond the geopolitical development, traders also focused on the details inside the latest US Consumer Price Index report. 

Headline inflation came in at 4.2% on an annual basis as energy costs remained elevated, but core CPI, which excludes food and energy prices, rose 0.2% during the month.

The reading came in below the 0.3% estimate tracked by Wall Street economists.

For investors who had spent months worrying that inflation would remain stubbornly high, the lower core reading offered some relief. 

Combined with the peace agreement, the data encouraged traders to move back into risk assets that had faced pressure throughout the conflict.

Although the latest move has improved market sentiment, chart data suggests Bitcoin still faces several hurdles before the longer-term trend turns positive.

On the daily chart, Bitcoin remains below its major moving averages despite the rebound.

The 20-day exponential moving average sits near $66,600, while the 50-day, 100-day, and 200-day averages are positioned around $70,600, $73,300, and $78,700.

BTC/USD 1-day price chart. Source: TradingView.

A recovery above the 20-day average would represent the first major technical victory for buyers since the latest correction began. 

Until then, the daily trend remains under pressure despite the recent bounce.

Momentum indicators have improved from oversold conditions. The daily Relative Strength Index has recovered to around 41 after falling into deeply oversold territory during the selloff. 

While the indicator remains below the neutral 50 level, it shows that selling pressure has eased considerably from recent lows.

On the 4-hour chart, Bitcoin has broken above a major volume profile zone around $63,000 to $64,000 and has managed to hold those gains after the news-driven rally.

BTC/USD 4-hour price chart. Source: TradingView.

Capital flows also point to renewed buying interest.

The Chaikin Money Flow indicator remains in positive territory near 0.19, a reading that typically indicates money is entering the market.

Liquidation data from CoinGlass suggests traders may now be watching levels above the market.

BTC 24-hour liquidation heatmap. Source: Coinglass.

The largest concentration of short liquidations sits between roughly $66,000 and $66,500, with additional clusters extending toward $67,000 and the $68,000 area.

Because leveraged positions often attract price action, a move through $66,000 could expose another round of short liquidations if bullish momentum continues. 

Beneath current levels, support remains concentrated around $64,500, $64,000, and the broader $63,000 to $64,000 region, where both volume profile and liquidation data show significant activity.

Attention now turns to the formal signing ceremony scheduled in Switzerland, which traders view as the final step in confirming the agreement reached between Washington and Tehran.

Should the deal proceed without complications, market participants may increasingly focus on the economic consequences rather than the geopolitical headline itself. 

Easing tensions could reduce pressure on oil prices and Treasury yields, which have become an important part of the market narrative because both factors influenced Bitcoin's decline earlier this year.

A sustained drop in energy-driven inflation could strengthen expectations that the Federal Reserve will eventually have more room to ease monetary policy. 

Such expectations have historically supported demand for risk assets, including cryptocurrencies.

For now, Bitcoin has regained a level that many traders viewed as an important psychological threshold. 

Whether the recovery extends toward $66,600 and beyond may depend on how markets respond to the final implementation of the agreement and whether the improvement in inflation data continues in the months ahead.

The post What’s next for Bitcoin as US and Iran are set to sign peace deal? appeared first on Invezz

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