Bitcoin briefly surged above $70,000 amid speculation of a potential ceasefire in the ongoing US-Iran military conflict. While the rebound marked the asset’s highest price since late March, several market analysts warn the move may be a short-lived “bull trap.”
Bitcoin has staged a strong rebound, with its price briefly climbing above $70,000. This resurgence appears linked to speculation of a potential 45-day truce between the US and Iran, as reported by The Kobeissi Letter.
The asset currently trades around $69,500, per CoinGecko’s data. Numerous analysts, however, warn that the bears remain in charge and predict a renewed pullback may quickly replace the daily green candle.
Several popular market observers have alerted that this green wave might be short-lived. X user Aralez noted the resurgence began on Sunday, pointing out that rallies on that day have typically been followed by short-term corrections.
Crypto Analyst echoed the warning, arguing, “Bull trap BTC. Don’t trust Sunday pump. Big dump incoming.” X user Ted also chipped in, suggesting Bitcoin is currently positioned in the $69,000-$70,000 resistance zone.
Several days ago, the popular analyst Ali Martinez outlined that BTC’s 50-day and 200-day Simple Moving Averages have crossed on the 3-day chart. He reminded that on previous occasions, this setup has been a precursor to a major double-digit price drop.
Despite the broadly bearish outlook, some analysts think the asset retains short-term upside potential. X user Trader Tardigrade argued Bitcoin has entered “the choppy and euphoric phase” and forecasted that “the next move could be explosive.”
Some on-chain metrics, including the asset’s exchange reserve, also give bulls some reasons for optimism. The amount of Bitcoin stored on centralized platforms fell to a seven-year low towards the end of March.
