Bitcoin climbed back above $63,000 during Thursday’s U.S. trading session as improving risk sentiment lifted both crypto and equity markets. The move followed comments from U.S. President Donald Trump suggesting Iran is seeking to revive negotiations after the recent breakdown of a ceasefire, easing some geopolitical concerns that had weighed on markets earlier in the week.
The recovery pushed Bitcoin up roughly 1.5% on the day, while major U.S. stock indexes also traded higher. The rally triggered nearly $100 million in crypto short liquidations over the past 24 hours, highlighting how quickly bearish positions were squeezed as sentiment improved.
Key Takeaways
Bitcoin rebounded above $63,000 as investors responded positively to renewed hopes for diplomatic talks involving Iran.
Nearly $100 million in crypto short positions were liquidated during the rally.
Traders are closely watching $64,700 as the key daily closing level that could determine Bitcoin’s next major move.
A failure to hold above $61,300 could increase the risk of another decline toward recent lows.
Bitcoin and Stocks Recover Together
Risk assets found fresh momentum after President Trump indicated that discussions with Iran could resume despite earlier reports that the ceasefire agreement had collapsed.
“They called a little while ago; they want to make a deal so badly.”
The comments helped reverse Wednesday’s cautious market mood, with investors rotating back into equities and cryptocurrencies.
Bitcoin responded by reclaiming the $63,000 level after briefly trading below it during the previous session. The recovery coincided with gains across U.S. equity markets, reflecting renewed investor appetite for higher risk assets as geopolitical tensions appeared to ease.
The move also forced a wave of bearish traders to exit positions. According to CoinGlass data, almost $100 million worth of crypto short positions were liquidated over the past day as prices climbed.
Traders Identify the Next Battleground
While the rebound has improved short term sentiment, analysts say Bitcoin still faces an important technical test before confirming a stronger recovery.
Market analyst Daan Crypto Trades highlighted $64,700 as the most important level to watch heading into the daily close. According to the trader, Bitcoin has been trading within a range between approximately $61,300 and $64,700. A decisive daily close above the upper boundary could strengthen bullish momentum and open the door for a broader relief rally across the crypto market.
Conversely, losing support near $61,300 would likely shift momentum back in favor of sellers and increase the probability of another move toward recent lows. The coming daily close is therefore expected to provide a clearer signal about whether the current recovery has enough strength to continue.
Bulls Target Higher Resistance
Several market participants believe buyers remain in control despite recent volatility. Crypto trader Jelle noted that bulls continue to defend key support levels and suggested reclaiming previous resistance could pave the way for another move toward the $65,000 to $70,000 region.
However, the analyst also cautioned that failure to reclaim those levels would likely put sub $60,000 prices back into focus. Meanwhile, trader Killa maintained a constructive longer term outlook, arguing that the current market structure remains healthy despite ongoing consolidation.
Rather than expecting an immediate breakout, the trader anticipates several more months of range bound price action before Bitcoin establishes its next sustained trend. Under that scenario, the $68,000 area could emerge as an attractive level for traders looking to manage new positions.
Macro Events Remain in Focus
Bitcoin’s latest rally once again highlights how closely digital assets are tracking broader macroeconomic and geopolitical developments.
Over recent months, crypto prices have reacted sharply to changes in interest rate expectations, ETF flows, economic data releases, and geopolitical headlines. Thursday’s rebound reinforced that pattern, with optimism surrounding potential diplomatic progress helping improve sentiment across global financial markets.
While geopolitical headlines provided the immediate catalyst, traders remain focused on technical confirmation before declaring that Bitcoin has resumed a sustained uptrend.
Conclusion
Bitcoin’s recovery above $63,000 has improved market sentiment after several days of heightened volatility, with easing geopolitical concerns providing fresh support for both cryptocurrencies and equities. The resulting short squeeze demonstrates how quickly positioning can shift when market sentiment changes.
Even so, traders are treating $64,700 as the critical level to watch. A strong daily close above that resistance could strengthen the case for a broader rally toward higher price targets, while a move below $61,300 would likely revive bearish momentum. For now, Bitcoin remains at a pivotal technical point as investors balance improving macro sentiment against the need for stronger confirmation from price action.
Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence before making any trading or investment decisions.
