Bitcoin price rebounded more than 3% today, climbing from $81,017 to $84,074 amid a combination of macroeconomic developments and technical factors supporting the move.
Macroeconomic Drivers
US President Donald Trump's comments regarding Russia and Ukraine negotiations contributed to the rebound. Trump stated that both leaders want to reach a ceasefire deal but are uncertain about the path forward. He also said the US does not believe China and Russia are assisting Iran, citing potential losses as the reason.
Following these comments, oil prices fell to approximately $92 per barrel on Tuesday. Trump indicated that oil would decline further once the war in Ukraine ends.
Bitcoin price gained as global bond yields fell amid a technology-sector sell-off and declining oil prices, which eased inflation concerns. The US 10-year Treasury yield dropped to 5.18%. The US dollar index also declined as Treasury yields eased, Japan's Producer Price Index came in at 6.8% below expectations of 7.6%, and central banks intervened in markets.
Technical and Derivatives Activity
On the technical front, Bitcoin rebounded from its 50-day moving average and continued within an ascending channel. Bitcoin futures open interest increased almost 3% in recent hours across CME, Binance, and other crypto exchanges, reflecting significant buying activity in derivatives markets.
Negative Bitcoin funding rates, observed for the first time in three months, historically coincide with positive price action. A bullish engulfing pattern appeared on the 4-hour chart, according to analysis.
Short liquidations accelerated during the rebound. Total crypto market short liquidations over the preceding four hours reached $7 million, with Bitcoin accounting for more than $3 million of that figure. Long liquidations continued in Ethereum, Solana, NEAR, and XRP.
Traders showed bullish sentiment as corporate Bitcoin treasuries continued accumulating BTC, while lower exchange-held supply and reduced panic selling supported the price movement.
