Bitcoin's price rose above $66,000 following a US-Iran ceasefire agreement, though analysts warn of potential market instability.
Following a preliminary ceasefire agreement between the US and Iran, Bitcoin has surged, trading above $66,000. President Donald Trump announced that a formal agreement is set to be signed on June 19.
On June 15, Bitcoin briefly peaked at over $67,000 before slightly correcting, and it is currently trading at approximately $66,500. Other major cryptocurrencies have also seen gains, with Ethereum rising to $1,750 (+3%), Solana to $75 (+4%), and HYPE increasing by 10% to $72.
The Associated Press reports that the agreement includes the reopening of the Strait of Hormuz and the lifting of US sanctions on Iranian ports, with further negotiations on Iran's nuclear program expected to follow over the next 60 days. However, some observers are skeptical about the deal's longevity, noting early signs of potential complications.
Israeli Prime Minister Benjamin Netanyahu has stated that Israeli forces will continue operations in Lebanon, and Iran has dismissed US claims of unrestricted passage through the Strait, suggesting they plan to impose fees.
Market Activity Concerns
Despite Bitcoin's price increase, analysts from Swissblock have pointed out weak buying activity, indicating that the price momentum indicator and on-balance volume (OBV) are showing signs of weakness. The momentum is currently at -1, with OBV at a multi-year low of -1.7 million.
Swissblock suggests that in bearish phases, momentum weakens first, followed by a decline in OBV, which often leads to further price drops. They caution that until both indicators show positive movement, the risk of new lows remains.
Conversely, data from Glassnode indicates a reduction in selling pressure and a rise in confidence among options traders. They noted, "With volume, open interest, and capital flows still weak, the move looks more like stabilization than a confirmed reversal." Furthermore, Galaxy Research has warned that the Bitcoin market cycle may not have hit its bottom yet, projecting potential price drops to between $40,000 and $46,000.
