Bitcoin Price Eyes $80,000 as Iran Peace Deal Hopes Lift Market Sentiment

Bitcoin started the final week of May with renewed optimism as traders looked for a possible move toward the $80,000 level after recovering from a sharp weekend drop below $75,000.

Btc briefly touched its lowest level since mid April before rebounding above $77,000. Several market analysts described the decline as a liquidity sweep rather than a trend reversal. The move below $75,000 a “very nice liquidity sweep” and Bitcoin could retest the $79,000 to $80,000 range if momentum continues.

Analysts also pointed to heavy short positions sitting between $80,000 and $80,500, which could trigger a short squeeze if prices continue rising. Some traders believe liquidations of bearish positions may help fuel a faster rally.

Iran Peace Talks Improve Global Risk Sentiment

Optimism around a possible US-Iran peace agreement has also supported Bitcoin and global markets. Reports suggesting progress in negotiations over the Strait of Hormuz helped push stock markets higher, while oil prices dropped sharply.

President Donald Trump said negotiations were moving forward and promised any agreement would be “good and proper.” Lower oil prices may ease inflation concerns, which investors are watching closely ahead of fresh US inflation data this week.

ETF Outflows and Binance Activity Raise Concerns

Despite bullish sentiment, some analysts remain cautious. US spot Bitcoin ETFs have seen more than $1.7 billion in outflows, while Binance recorded a sharp rise in Bitcoin inflows, with reserves increasing by around 16,000 BTC over the past month.

Analysts warned that leverage in futures trading is rising while spot demand remains weak, increasing the risk of another large liquidation event if momentum suddenly turns negative.