Bitcoin price traded above $76,500 today, holding onto recent gains despite rising geopolitical tension. Bitcoin fell back toward $75,000 into the weekly close and over the weekend as renewed tension between the United States and Iran rattled markets and refocused attention on oil prices.

The pullback followed a failed breakout above $78,000, which had marked Bitcoin’s highest level in ten weeks. The move higher came after a brief easing in geopolitical risk, when Iran signaled the Strait of Hormuz was open. That shift sent crude lower and lifted risk assets, including crypto. The rally reversed once reports emerged that the waterway had been closed again, raising the prospect of tighter global oil supply.

“Bitcoin finally broke out of its multi-week range last week, now trading around $75,000, finally breaching the important $74,000 as $530 million worth of shorts were squeezed by positive developments around the Straits of Hormuz,” Bitfinex analysts wrote to Bitcoin Magazine.

The Strait of Hormuz handles a significant share of the world’s oil shipments, and any disruption tends to drive energy prices higher. Oil climbed back toward the high-$80 range after the renewed closure, adding pressure to inflation expectations and risk markets. Bitcoin price, which has tracked macro conditions through the conflict, gave up gains as sentiment shifted.

“The sustainability of a move higher [for bitcoin] now hinges on geopolitics as the US-Iran ceasefire expires 21 April unless a resolution is found, leaving upcoming negotiations in the driving seat and determining whether this breakout evolves into a continuation or a failure,” Bitfinex analysts note.

Market data shows the reversal triggered a wave of liquidations. More than $250 million in crypto positions were wiped out over a 24-hour period, with longs taking the brunt after the failed push higher. The unwind followed a larger short squeeze earlier in the week, when Bitcoin price’s surge above $76,000 forced bearish bets out of the market.

Traders remain focused on key technical levels. Bitcoin price continues to face resistance near its 21-week exponential moving average, which sits just below $79,000. Analysts say rejection at that level raises the risk of a retest of support near $73,000, an area tied to a prior double-bottom formation.

Derivatives positioning also points to heightened volatility. Roughly $7.9 billion in Bitcoin options are set to expire this week, with heavy open interest clustered around the $75,000 strike. That level may act as a pivot zone, where dealer hedging flows could amplify price swings in either direction.

Bitcoin price sentiment is bullish

Despite the recent pullback, broader sentiment has not fully turned. Funding rates in perpetual futures remain negative, signaling that short positioning is still elevated. That leaves room for another squeeze if prices hold above key support levels.

At the same time, macro drivers remain dominant. Bitcoin price’s recent price action has shown sensitivity to headlines tied to the conflict and energy markets. Any sustained rise in oil prices could reinforce inflation concerns and delay expectations for looser monetary policy, a backdrop that has weighed on crypto demand in recent months.