Key Takeaways:
Bitcoin gained 4.5% to trade at $71,205 on Monday after President Donald Trump announced progress toward a potential deal with Iran, reducing global risk aversion.
"The move was driven by macro factors, not on-chain specifics, with investors showing a clear preference for holding their positions rather than selling into the rally," said analysts at CryptoQuant, a leading on-chain analytics firm, in a note.
The rally saw over $150 million in short liquidations across major exchanges in the past 12 hours, according to Coinglass data as of 22:00 UTC. Bitcoin's market dominance held steady at 54.5%, while open interest in BTC futures ticked up 3% to $35.2 billion, signaling fresh capital entering the market.
The move pushes Bitcoin toward the key resistance level of $73,000, its all-time high from March 2026. A sustained break above this level could open the path to further price discovery, while failure may see a retest of support near $68,500.
The crypto rally mirrored moves in traditional markets, with the S&P 500 adding 1.2% and oil prices falling 2% on the reduced geopolitical risk premium. Ethereum followed Bitcoin higher, gaining 5.2% to $3,640.15, while XRP and Dogecoin also posted significant gains.
The "holding" strategy mentioned by the analytics firm suggests that existing investors are not using this price strength as an exit opportunity. Instead, the data indicates they anticipate further upside, a sentiment supported by the increase in open interest. This contrasts with previous rallies where profit-taking was more evident.
This article is for informational purposes only and does not constitute investment advice.
