Bitcoin liquidation hunts push BTC to $78K as US-Iran risks lift stocks
Bitcoin (BTC) flashed to about $78,000 around the US Wall Street open, then reversed as a new round of “liquidation hunts” neutralized longs and shorts. TradingView data showed BTC/USD briefly tagging $78,000 (highest since Thursday) before sliding.
CoinGlass data cited in the report put the total liquidations over 24 hours at roughly $66 million, reflecting aggressive position unwinds on both sides.
The catalyst was macro risk flow: US strike headlines and renewed doubts around an Iran peace deal. Despite the geopolitical noise, US stock markets hit fresh all-time highs, while crypto lagged.
Traders highlighted nearby liquidity zones on exchanges/order books. Material Indicators said Bitcoin price action “remains driven by liquidation hunts,” pointing to support protection near the 21-week simple moving average around $75,800 and a larger liquidity cluster below near $74,000.
On the derivatives side, Glassnode flagged a warning for bulls: funding rates had “sharply reversed” from April’s short-leaning setup and turned decisively positive, signaling increasing long interest after the spike. K33 Research also noted subdued market participation—spot volumes near yearly lows, declining derivatives activity, and largely flat open interest—suggesting a wait-and-see environment with limited conviction.
For traders, the key takeaway is that Bitcoin’s move appears driven more by liquidity/positioning mechanics than by sustained macro or fundamental momentum.
Neutral
The article describes a spike-and-reverse in Bitcoin driven mainly by short-term positioning and forced liquidation, not by a clean trend change. While BTC briefly reached $78K and both sides were liquidated (~$66M over 24 hours), the broader confirmation is mixed: US stocks hit new all-time highs (risk-on), yet crypto underperformed. Funding rates flipped decisively positive versus April, which can increase upside chase risk but also raises the probability of another stop-run or reversal when liquidity dries up. At the same time, K33 notes muted spot/derivatives participation and flat open interest, which historically aligns with choppy, range-bound price action rather than a sustained breakout. In similar past liquidation-driven moves, prices often overshoot then mean-revert toward nearby liquidity/support bands (e.g., around the 21WMA area mentioned). That combination—liquidation mechanics + still-soft participation + funding optimism—leans toward trading opportunities inside a range, keeping the overall outlook neutral in the near term, with longer-term direction still dependent on whether macro uncertainty persists and whether funding/participation continue to expand.