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▲ Donald Trump, Bitcoin (BTC)/ChatGPT generated image
Bitcoin (BTC) set a new 13-week high but failed to break past $83,000. Conflicting signals surrounding the possibility of a ceasefire agreement between the U.S. and Iran rattled cryptocurrency market sentiment, causing Bitcoin to give back some of its intraday gains.
Cointelgraph reported on May 6, citing TradingView data, that Bitcoin recorded a short-term high of $82,833 on Bitstamp. Bitcoin approached $83,000 but failed to surpass that price level again, and its upward momentum cooled after Wall Street opened.
Bitcoin showed an upward trend amid reports that a 14-point ceasefire agreement could come into effect. The agreement reportedly included the resumption of oil shipments through the Strait of Hormuz. However, the market sentiment was shaken again when U.S. President Donald Trump stated that Iran's acceptance of the ceasefire terms “could be a big assumption.”
Trump said in a Truth Social post, “If they don’t agree, the bombing will begin, and unfortunately, it will be at a much higher level and intensity than before.” Following these remarks, Bitcoin erased its gains, trading around $81,500 at the time of writing, still up about 1% for the day.
Oil prices also showed significant volatility. West Texas Intermediate (WTI) crude fell more than 10% in a few hours before rebounding to $96 per barrel. Trading resource The Kobeissi Letter stated on X (formerly Twitter) that an unusually large short position, worth approximately $1 billion, had formed just before the WTI plunge.
Bitcoin traders paid attention to potential liquidation zones within exchange order books to gauge the next price direction. Trader Daan Crypto Trades said on X, “To the upside, there’s still some left in the $82,400 zone. However, the price has taken most of the local liquidity over the past day. Since the price is at a 3-month high, we need to look wider to see other major zones.”
Regarding the downside zones, Daan Crypto Trades stated, “If the price moves into that zone, $80,100 and $78,200 levels are worth watching.” According to CoinGlass data, total crypto liquidations in the last 24 hours exceeded $550 million, with short position liquidations accounting for $400 million of that.
Trader CrypNuevo observed that Bitcoin was overheated in the short-term timeframe and suggested a potential pullback to the 50-period Simple Moving Average on the 4-hour chart. This moving average was located at $78,432. He said, “Ideally, if it pushes straight higher without signs of fatigue and the price gets even more overheated, then shorts will become more attractive and a valuable trade when signals appear at higher prices.”
Bitcoin rose to the threshold of $83,000, but geopolitical variables related to the U.S. and Iran, along with oil price volatility, dictated the market's short-term direction. The zones of $80,100, $78,200, and $78,432, suggested by traders, were presented as key price levels to watch if Bitcoin's upward trend undergoes a correction.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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