Bitcoin Retreats From $78,000 as Iran Shuts the Strait of Hormuz Once Again
Bitcoin was unable to maintain its gains following Iran's closure of the Strait of Hormuz under 24 hours since declaring the strait was open.
Large Short Squeeze, Then a Retreat
* Rise on Friday: Bitcoin jumped to $78,000 after Iran said it reopened Hormuz fully, and Trump stated that Tehran agreed to stop its nuclear program indefinitely.
* Liquidations: Wiped out $762 million across 168,336 traders, $593 million for shorts in total. Bitcoin shorts wiped $381 million, ether shorts $167 million.
* Retreat on Saturday: Hormuz is shut again due to "management of the area by the forces," and bitcoin retreats back to $76,091, rising 0.8%.
Market Structure & Catalysts
* Negative Funding: BTC perpetuals were negative for weeks, where shorts paid longs. The opening of Hormuz changed the narrative.
* Oil Effect: WTI crude oil prices tumbled by almost 10% to $85.90 per barrel due to Hormuz opening. However, Iran quickly revoked its decision.
* Key Level: $76k-$78k has capped every previous rally from the Feb 5 crash. Traders monitor for a clear weekly close above $76k to sustain the breakout.
Other Major Coins
* Ether declined by 0.2% in 24 hours but rose 5.2% weekly.
* Solana dipped 1.3%, Dogecoin fell 2.1%.
* XRP is the best weekly performer, gaining 6.4%, followed by BNB with 4.6%, and Bitcoin with 4.5%.
Outlook
A continued consolidation above $76k until Monday will preserve the technical break out regardless of geopolitical swings. Losing that level will put Bitcoin back in its March range.
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