Bitcoin climbed toward $75,000 on April 13 after a wave of short liquidations followed escalating tensions between the United States and Iran over the Strait of Hormuz.
The move saw BTC rise from a low of $70,741 to above $74,900 within hours as traders rushed to cover bearish positions amid geopolitical uncertainty.
The rally tested the upper boundary of a two-month consolidation range between $65,000 and $75,000, with analysts identifying $75,000 to $80,000 as the next key upside zone.
The surge was partly driven by crowded short positioning and negative funding rates, which signalled bearish sentiment before the squeeze accelerated upward momentum.
Broader macro conditions remain mixed, as rising oil prices linked to Middle East tensions increase inflation risks that could delay interest rate cuts and pressure risk assets.
Institutional demand has provided underlying support, with spot bitcoin ETFs seeing renewed inflows and Strategy increasing its holdings to 780,897 BTC after acquiring nearly 14,000 coins.
Downside risks include potential tax-related selling ahead of the April 15 deadline and a failure to hold above $72,000, with traders closely watching the $70,000 support and $75,000 resistance levels.
At the time of reporting, Bitcoin price was $74,310.04.