Bitcoin Surges Past $74K as Short Squeeze Reverses Hormuz Selloff

After President Trump's order to blockade the Strait of Hormuz pushed Bitcoin below $71,000 on Sunday, April 12, the market sentiment shifted sharply on Monday morning. Buyers stepped in at the $70,000 support level, and millions of dollars in leveraged short positions were liquidated as the price climbed through resistance levels.

Bitcoin reached intraday highs above $74,900 before settling near $74,300 on April 14. The move represented a roughly 6% swing from the weekend's low of $70,600. Ethereum also recovered from below $2,200, though its bounce lagged behind Bitcoin's.

The short squeeze highlights how crowded bearish positioning can amplify price moves in both directions. After the initial drop on Sunday, derivatives markets showed a heavy concentration of short positions, and once the $71,000 level held, the cascading liquidations drove a fast recovery.

The broader context remains complex. Oil prices are still elevated above $100 per barrel, and the geopolitical standoff between the U.S. and Iran continues without resolution. However, Bitcoin's ability to bounce so quickly from a macro shock suggests that underlying demand, particularly from institutional buyers, remains strong near the $70,000 range.

The $75,000 level is the next key resistance. A clean break above it could open the path toward the $76,000-$78,000 range. On the downside, the $70,000 floor has now been tested and held in recent sessions, reinforcing it as a critical support level. Developments in the Hormuz standoff remain the primary macro catalyst. Any de-escalation could fuel further upside, while an extended blockade may keep volatility elevated.