Bitcoin Surges Above $65,000 as US-Iran Peace Deal Eases Macro Risks

Bitcoin has regained its footing above $65,000 after the signing of a peace deal between the US and Iran eased one of the biggest macro risks weighing on crypto markets. The agreement includes the immediate removal of the US Navy blockade and the reopening of the Strait of Hormuz without toll charges.

The news-driven rally has also been boosted by the latest US Consumer Price Index report, which showed head inflation at 4.2% on an annual basis, with core CPI rising 0.2% during the month below the 0.3% estimate tracked by Wall Street economists.

Despite the positive sentiment, chart data suggests Bitcoin still faces several hurdles before the longer-term trend turns positive. The daily chart shows that Bitcoin remains below its major moving averages, with the 20-day exponential moving average sitting near $66,600 and the 50-day, 100-day, and 200-day averages positioned around $70,600, $73,300, and $78,700.

Capital flows indicate renewed buying interest, with the Chaikin Money Flow indicator remaining in positive territory near 0.19. The largest concentration of short liquidations sits between roughly $66,000 and $66,500, which could expose another round of short liquidations if bullish momentum continues.