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Bitcoin recovered toward $77,000 after a sharp weekend drop, as traders reacted to fresh comments from US President Donald Trump on a possible Iran peace deal. The move also followed heavy short liquidations across the crypto market, which forced bearish traders to buy back positions. However, reports from the US and Iran remain mixed, leaving traders focused on whether Bitcoin can hold key support levels.
Bitcoin rose 2.06% over 24 hours to trade near $76,811.75, matching the broader crypto market’s 2.06% gain. The rebound came after Bitcoin fell to a five-week low near $74,250, as geopolitical concerns weighed on risk assets.
CoinGlass data showed that BTC recorded $125.77 million in total liquidations over 24 hours. Short positions made up $119.36 million of that amount. This forced bearish traders to close positions, creating buy-side pressure as Bitcoin moved higher.
The wider crypto market also saw more than $300 million in short liquidations during the recovery. This helped several large altcoins move higher. Ethereum climbed back above $2,100 after dipping near $2,000, while NEAR, ONDO, MORPHO, and HYPE also posted stronger gains.
However, the rebound appeared more technical than demand-led. The move came as leveraged short positions unwound quickly, not as spot market demand showed clear strength. Traders are watching if Bitcoin can stay above $77,000 after the short squeeze cools.
Market sentiment improved after Trump said on Truth Social that a peace agreement involving the United States, Iran, and several Middle Eastern countries had been “largely negotiated.” He named Saudi Arabia, the UAE, Qatar, Pakistan, Türkiye, Egypt, Jordan, and Bahrain among the countries involved.
Trump also said the “final aspects and details of the Deal are currently being discussed, and will be announced shortly.” He added that the Strait of Hormuz would reopen under the planned agreement. That waterway remains important for global energy markets, and fears around its closure had added pressure to risk assets.
However, the reports still contain doubts. Iran’s Fars News agency claimed that “American officials have acknowledged in multiple messages to Iran that Trump’s posts are primarily for promotional purposes and media consumption within the US.” It also said Iranian officials had been told “no attention be paid to these statements.”
Meanwhile, another report said Iran had agreed to give up its highly enriched uranium under the proposed deal. The mixed claims kept uncertainty in place, even as crypto prices reacted positively to the possibility of lower tension in the region.
Bitcoin now trades near a fragile technical area after failing to break resistance around $82,000 earlier. Analysts are watching whether BTC can hold above the $76,082 Fibonacci support level. A firm hold could open the way for a retest of resistance near $78,523.
However, a break below that support could expose Bitcoin to another move toward the $74,255 swing low. The 7-day RSI near 40.57 shows room for further recovery, but buyers still need stronger confirmation.
ETF flows remain another key signal. US spot Bitcoin funds reportedly saw $1.26B in net outflows last week. A reversal in those outflows would show stronger institutional demand and could support a broader recovery.
For now, Bitcoin’s bounce remains tied to short liquidations, macro headlines and cautious risk appetite. A daily close above the 7-day simple moving average near $76,899 would give traders a clearer short-term signal.
