Bitcoin price printed a fresh monthly high above $78,000 today as institutional investors reacted to the indefinite extension of the US-Iran ceasefire agreement.
The largest crypto by market cap has rallied over 10% in the past 24 hours, effectively pushing the total crypto market cap back well above the $2.7 trillion mark.
Risk-on sentiment was clearly reflected in the crypto fear and greed index, which hit greed levels at 63, marking a six-point increase from the previous day.
For altcoins, however, gains were limited, with only a small handful managing to benefit from the massive liquidity rotation into Bitcoin.
Why is Bitcoin price going up today?
Bitcoin price hit a monthly high of $78,922 today as investors turned bullish after geopolitical tensions eased, following US President Donald Trump’s announcement of an indefinite extension of the Iran ceasefire agreement.
As a result of the extension, investor concerns around the threat of conflict disrupting oil and trade in the Strait of Hormuz, which had been weighing down global markets and capping crypto gains, were effectively removed, easing the uncertainty that had persisted since the start of the month.
The rally was further accelerated by a short squeeze that intensified as Bitcoin decisively moved past $76,000. According to Coinglass data, over $330 million in leveraged positions were liquidated in the last 24 hours, with short traders bearing the brunt of the losses.
Bitcoin bulls were also encouraged by technical signals, as the flagship crypto had finally broken out of a two-month consolidation range that began in February, which had previously served as a heavy resistance zone.
Much of this momentum was supported by aggressive buy-side pressure from corporate treasury giant MicroStrategy, alongside sustained inflows into spot Bitcoin ETFs.
On April 20, Strategy revealed it purchased 34,164 BTC, cementing its position as the world’s largest publicly traded Bitcoin holder.
Meanwhile, US spot Bitcoin ETF products recorded their sixth straight day of inflows, further strengthening the institutional adoption narrative.
Will Bitcoin rally continue?
According to Bitcoin’s 24-hour liquidation heatmap, there’s a massive cluster of liquidity sitting just below $80,000.
If Bitcoin price can clear the immediate resistance between $79,500 and $79,800, it could trigger another wave of liquidations that propel the price toward $81,000.
The $80,000 mark is an important psychological level, and capturing this with conviction can solidify a bullish short-term outlook, potentially turning this former ceiling into a new floor.
On the contrary, if the rally fades due to profit-taking at these local highs, it could force a healthy retreat towards $77,500, which has become the next major liquidation-backed support zone.
Bitcoin could form a local top near $80,000, according to crypto analyst Ted Pillows. See below.
Similarly, analyst Elija noted that investors should not get “too excited,” unless Bitcoin manages a weekly close above $78,000.
However, other analysts agree that breaching past the $80,000 mark would open up the path towards $85,000.
At the time of writing, the Bitcoin price was trading at $78,895, with gains of 10.4% on the day.
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