A two-week ceasefire had been agreed upon between the US and Iran. This news caused Bitcoin (BTC) to surge above $72,000, while oil prices experienced a sharp decline. However, Israel’s continued attacks on Lebanon cast a shadow over the ceasefire.
Despite the ongoing US-Iran ceasefire uncertainty, Bitcoin remains above $70,000. Analysts believe that oil prices will play a key role in BTC’s next move.
With Bitcoin surpassing $70,000, Bitfinex analysts indicated that whether the upward trend in BTC price will be sustainable will depend on oil prices.
Bitfinex analysts stated that if oil prices continue to fall by 15-16%, the Fed may bring forward the timeline for interest rate cuts.
This would be a positive development for risk assets, including Bitcoin, and would support an upward trend.
Analysts also noted that there are approximately $6 billion in leveraged short positions concentrated around $72,000, and that these short positions could rise as a result of increasing expectations of FED interest rate cuts.
In such a scenario, the closing of short positions in Bitcoin could bring the price close to $80,000.
However, Bitfinex analysts added that significant geopolitical uncertainty persists. In this regard, analysts stated that a complete closure of the Strait of Hormuz would cause oil prices to rise again to $120, which would reduce the likelihood of a US Federal Reserve interest rate cut.
Analysts have concluded that the next two weeks could be a turning point for Bitcoin’s direction.
*This is not investment advice.
