Bitcoin price hit a monthly high above $77,000 today as investors reacted to reports that the Strait of Hormuz has reopened and speculation that the US-Iran war may soon de-escalate. The news was enough to send Bitcoin rallying nearly 4% in hours.
The total crypto market cap jumped past the $2.7 trillion mark, gaining nearly 5% on the day as the Fear and Greed Index shot up 7 points to enter “Greed” territory at 63 for the first time since July last year.
Risk-on sentiment has surged back into the space as reflected in the altcoin market performance, where nearly all of the top 100 assets have turned bright green with a number of tokens posting double-digit gains as the US market opened.
Why is Bitcoin price going up?
Bitcoin price managed to breach past the liquidity cluster around $76,000 following the announcement from Iranian officials that the Strait of Hormuz is now “completely open.”
Crypto investors were closely watching geopolitical developments for signs of de-escalation, and the situation around the Strait had kept global risk markets artificially suppressed, especially as fears of a blockade sent oil prices soaring toward the $100 mark.
However, as shipping lanes opened up, oil prices retraced and fell sharply within hours after the news broke. At the time of writing, the Brent crude June delivery contract had fallen nearly 10.42% to $89.03 per barrel, while Crude Oil WTI Futures for May delivery was down over 11.11%, reaching $84.17 per barrel.
Lower oil prices lower the “inflation floor,” providing the Fed more room to eventually consider the rate cuts the market has been pricing in for late Q3. This is especially true as CPI data released earlier this week also cooled significantly and came in below expectations.
The upside rally was further accompanied by a massive cascade of short liquidations as seen on Coinglass. Over the 4 hours from the time of publication, nearly $400 million in short positions had been liquidated, with Bitcoin positions accounting for over $250 million of that total.
In terms of technical structure, Bitcoin had also moved past the critical resistance zone of $76,000 – $76,500, which marked the previous March high and the 23.6% Fibonacci retracement level of the move from the $126,272 all-time high down to the $60,000 swing low.
$BTC Attempting another break above the March highs at $76K.
This is the level for the bulls to break for continuation back to the $80Ks.
As such, the breakout was widely viewed as a confirmation of a trend reversal, flipping a major psychological barrier into a solid foundation for further gains.
Will Bitcoin reclaim $80,000?
With risk-on sentiment back in full swing, likely, Bitcoin will soon attempt a breakout over $80,000, especially as the current momentum suggests there’s little meaningful resistance remaining between the current price and that psychological milestone.
Successfully reclaiming this key psychological resistance level would open the path for a run toward the $85,000 mark, which aligns with the 38.2% Fibonacci retracement and represents the next major hurdle for bulls seeking to revisit the all-time high.
Institutional demand, which had cooled earlier in the week, also seemed to be rebounding strongly, as evident by the Coinbase Bitcoin Premium Index, which had hit its “highest level since October 2025,” according to crypto analyst Ted Pillows. (See below.)
On the upside, fellow crypto trader and analyst Rekt Capital pointed to $82,500 as the level Bitcoin needs to reclaim to restore broader bullish momentum.
In his view, a move above that mark would do more than just confirm short-term strength; it would also signal a break from the multi-month pattern of lower highs that has defined the ongoing macro downtrend.
Until that structure is invalidated, he cautioned that any upside could remain limited in scope.
“History suggests neither of these technical milestones will happen and that the Bear Market still has ~6 months to go,” the analyst noted.
At the time of writing, the Bitcoin price was hovering above $77,900, with gains of roughly 5% in the past 24 hours.