Key facts
- Bitcoin price rose over 3% to $84,074.
- Bitcoin futures open interest increased by nearly 3%.
- US 10-year Treasury yields fell to 5.18%.
- Bitcoin rebounded from its 50-day moving average.
- Analysts predict a potential rally to $94,000.
- Crypto short liquidations totaled $7 million in four hours, with Bitcoin accounting for over $3 million.
Bitcoin's price experienced a significant rebound of over 3% on Tuesday, moving from $81,017 to $84,074. This upward movement was influenced by a confluence of macroeconomic factors and technical strength. Corporate treasury buys, including those from Strategy, contributed to a bullish sentiment among traders. The derivatives market also showed increased activity, with Bitcoin futures open interest rising by nearly 3% across major exchanges like CME and Binance.
Macroeconomic developments played a role in the price surge. Comments from US President Donald Trump regarding a potential ceasefire in the Russia-Ukraine war, and his views on geopolitical alliances, influenced market sentiment. Trump suggested that both Ukrainian and Russian leaders desired a resolution, though they were unsure how to achieve it. His remarks also touched upon the relationships between China, Russia, and Iran, suggesting they were not actively aiding Iran due to potential losses.
These geopolitical discussions coincided with a drop in oil prices to around $92 per barrel on Tuesday. The broader market saw a decline in global bond yields, with the US 10-year Treasury yield falling to 5.18%. This was partly driven by a tech-led sell-off that boosted demand for safe-haven assets and eased inflation concerns stemming from lower oil prices. The US dollar index (DXY) also weakened amid falling Treasury yields, below-expectation Japanese PPI data, and central bank interventions.
Technically, Bitcoin's price found support at its 50-day moving average and continued its ascent within an ascending channel. This was further supported by negative Bitcoin funding rates, a condition that has historically preceded positive price action. Analysts, such as Cheds Trading, observed a bullish engulfing pattern on the 4-hour chart, suggesting potential for further upside. Data from Coinglass indicated significant short liquidations in Bitcoin over the preceding hours, totaling over $3 million out of $7 million in total crypto short liquidations.