Bitcoin has rebounded above the $65,000 mark following the announcement of a peace agreement between the United States and Iran, a development that removes one of the most significant geopolitical risks that had weighed on cryptocurrency markets in recent months.
President Donald Trump confirmed that negotiations with Iran concluded successfully, resulting 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 facilitated the talks, ending a 106-day conflict that had disrupted global markets and pushed energy prices higher.
Markets responded swiftly. Bitcoin surged from around $64,000 to above $65,500 within hours of the announcement, according to CoinGecko data, which showed the cryptocurrency trading near $65,600—up approximately 2% over 24 hours. The move extended gains that began after the release of US inflation data.
Inflation Data Adds to Positive Sentiment
The latest US Consumer Price Index report provided additional support. Headline inflation came in at 4.2% year-over-year, with energy costs remaining elevated. However, core CPI, which excludes food and energy, rose just 0.2% month-over-month—below the 0.3% estimate tracked by Wall Street economists.
For investors concerned about persistently high inflation, the lower core reading offered relief. Combined with the peace agreement, the data encouraged traders to rotate back into risk assets that had faced pressure throughout the conflict. The broader market also rallied, with the Dow surging 349 points as chip stocks rallied on the peace optimism.
Technical Hurdles Remain Despite Rebound
While the latest move has improved market sentiment, chart analysis suggests Bitcoin still faces significant resistance before the longer-term trend turns positive. On the daily chart, the cryptocurrency remains below its major moving averages despite the bounce.
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, respectively. A recovery above the 20-day EMA would represent the first major technical victory for buyers since the latest correction began. Until then, the daily trend remains under pressure.
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 still below the neutral 50 level, the indicator shows that selling pressure has eased considerably.
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. Capital flows also point to renewed buying interest, with the Chaikin Money Flow indicator remaining in positive territory near 0.19, a reading that typically indicates money is entering the market.
Liquidation Levels and Key Support Zones
Liquidation data from CoinGlass suggests traders are now watching levels above the market. 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.
What to Watch After the Switzerland Signing
Attention now turns to the formal signing ceremony scheduled in Switzerland, which traders view as the final step in confirming the agreement. 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, both of which 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—a scenario that has historically supported demand for risk assets, including cryptocurrencies.
For now, Bitcoin has regained a level that many traders view 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. Meanwhile, some crypto investors are pivoting to alternative strategies as market volatility persists.
This article is for informational purposes only and does not constitute financial advice.
