Why are cryptocurrencies on the rise again today? Key factors in recent days

Why are cryptocurrencies on the rise again today? Key factors in recent days

The cryptocurrency market is experiencing significant growth, supported not only by technical signals but also by current global events. What is behind this recovery?

Growing confidence due to political calm

The main impetus was the recent news of a ceasefire between Israel and Iran announced by US President Donald Trump. The move eased fears of a prolonged Middle East conflict, which in the past has also affected oil prices and risk sentiment on financial markets. Following the announcement, cryptocurrency prices began to rise rapidly, with the market capitalisation increasing by 4.4% in the last 24 hours, reaching a value of $3.26 trillion.

Significant liquidation of short positions and short squeeze

The second important factor is the wave of short liquidations, which has helped prices rise significantly in recent days. Over $471 million in cryptocurrency positions were liquidated in 24 hours, most of which were short positions. The largest liquidation took place on the Binance exchange, where over $12 million in ETH/USDT was liquidated. This phenomenon led to a short squeeze, where traders who were speculating on a decline had to close their positions at higher prices, fueling further market growth.

Technical outlook and future potential

The charts show that the total market capitalization of cryptocurrencies forms a bull flag - a pattern that signals the possibility of further growth. Currently, the market is testing the upper boundary of this formation at $3.28 trillion, which is also the 50-day moving average. If the price manages to overcome this high-volume resistance, the market could quickly head towards its target of around $4.76 trillion, which represents a nearly 50% increase from current levels.

Summary

In short, today's rise in cryptocurrencies is supported by political calm, massive short liquidation and a technical bull flag signal. If it manages to stay above key resistance, we can look forward to further gains and position strengthening in the digital asset market.

*This is not an investment recommendation.

Coingarage team