US-Iran truce boosts BTC, but sentiment recovery premature: CoinDesk

A two-week ceasefire between the U.S. and Iran has driven a short-term rally in Bitcoin, but it is too early to conclude that investor sentiment in the risk-asset market has fully recovered, CoinDesk reported. The outlet noted that Bitcoin has risen 3% over the past 24 hours, while ETH, XRP, and SOL have all climbed by more than 5%. This price action was primarily caused by the ceasefire, which led to the reopening of the Strait of Hormuz and a sharp drop in oil prices. The decline in oil has eased inflation concerns and lowered the probability of a rate hike by the Fed, creating a favorable environment for cryptocurrencies, CoinDesk analyzed. The bullish sentiment could be reinforced if Morgan Stanley's Bitcoin ETF sees sufficient trading volume and inflows on its first day. However, CoinDesk added that it is premature to assume a full recovery in investor sentiment, considering that the liquidation of short positions in the Bitcoin futures market had a significant impact on the short-term price increase. From a technical perspective, CoinDesk identified the next major resistance level at $76,100, near the 100-day moving average, with major support at $65,000.