Bitcoin price eyes ascending triangle breakout, will it reclaim $80,000?

Bitcoin price edged closer to the $75,000 mark after news reports suggested a potential de-escalation of the U.S.-Iran war. Bitcoin is now close to breaking out of an ascending triangle that could push it higher this week.

According to data from crypto.news, Bitcoin (BTC) price rose nearly 6% to a 4-week high of $74,788 on Tuesday morning Asian time. Trading at $74,675 at press time, it stood nearly 9% higher over the past week.

Bitcoin price climbed higher amid renewed hopes of a potential ceasefire deal between the U.S. and Iran after the latter hinted that its officials are ready to abandon pursuing a nuclear enrichment program. This came just a day after U.S. naval forces began intercepting and blocking Iranian traffic at the Strait of Hormuz.

Following this, crude oil prices, which rose to nearly $120 yesterday, came crashing down under $100 at press time, reducing fears of global inflation and boosting risk assets such as Bitcoin.

Bitcoin price also benefited from anticipation surrounding the U.S. Producer Price Index (PPI) scheduled for release later today, as investors look for signs that wholesale inflation might come in lower than the 4.6% year-over-year forecast.

Risk assets, including Bitcoin, tend to thrive when PPI data shows cooling below expectations—currently estimated at a 1.2% monthly increase, as it suggests slowing inflation at the production level. This trend could encourage the central bank to pause its aggressive stance on interest rates or even begin cutting interest rates later this year.

Over $225 million in short positions from across derivatives markets also helped lift Bitcoin price as bears were forced to buy back their assets at a loss. This wave of forced buying created a short squeeze that provided the necessary fuel to accelerate the current market breakout.

On the daily chart, Bitcoin has been forming an ascending triangle pattern that it has been developing since its drop in early February this year. Following the recent Bitcoin rebound, the bellwether asset is moving closer toward breaking out of the upper horizontal trend line of the pattern at around $76,000.

A look at technical indicators shows that bulls currently maintain control of the market. The Supertrend has flipped green for the first time this month, which means the short-term momentum has shifted from bearish to bullish.

The Aroon Up sits at 100% while a much lower Aroon Down reading also reinforced the bullish view by suggesting that new highs are being reached while selling pressure remains weak.

For now, $76,000 is acting as the key resistance level to watch. A decisive breakout above the current triangle could embolden bulls to reach for the next immediate psychological resistance level at $80,000.

On the contrary, a drop below $72,000 could invalidate the short-term bullish setup.