Bitcoin surged above $66,000 on Tuesday, trading above $66,500 with a 4% gain, after reports of a preliminary peace agreement between the United States and Iran. The deal, confirmed by Iran's Supreme National Security Council, halts military operations across all fronts including Lebanon. U.S. President Donald Trump announced via Truth Social that he authorized the reopening of the Strait of Hormuz and the removal of the U.S. naval blockade. Pakistan Prime Minister Shehbaz Sharif said the finalized agreement is expected to be signed in Switzerland on Friday.
Peace deal details
Iran's Supreme National Security Council confirmed a Memorandum of Understanding (MoU) and stated that military operations would cease immediately and permanently. Iranian Deputy Foreign Minister Kazem Gharibabadi indicated that broader negotiations would continue during a proposed 60-day ceasefire period, with sanctions relief and Iran's nuclear program as key discussion points. The easing of geopolitical tensions improved risk sentiment across financial markets, lifting Bitcoin along with other risk assets.
ETF outflows persist
Despite the rally, institutional demand remains under pressure. U.S. spot Bitcoin ETFs recorded net outflows of approximately $315.84 million last week, marking the fifth consecutive week of withdrawals. Continued ETF selling could limit Bitcoin's upside potential and increase the risk of renewed volatility if retail demand fails to offset institutional withdrawals. The timing isn't great for a sustained breakout — the peace deal provides a short-term catalyst, but the institutional selling trend hasn't reversed.
Technical picture
Bitcoin's 4-hour chart turned bullish in the short term, but the broader trend remains challenged as BTC stays below major moving averages and a previously broken ascending trendline. The MACD turned positive and the RSI climbed to around 71, indicating stabilization but not a full trend reversal. Key resistance levels sit at the 50-day EMA ($70,704) and the 100-day EMA ($73,412). On the downside, support is at $64,004. Traders will be watching whether Bitcoin can hold above $66,000 in the coming sessions, especially with the peace deal signing scheduled for Friday in Switzerland.
