Crypto markets kicked off the week with renewed strength after reports emerged that the U.S. and Iran are considering a 45-day ceasefire, lifting sentiment and sparking a wave of short liquidations. Over the last 12 hours, bearish bets were unwound at nearly three times the rate of long positions.

Bitcoin advanced 3% to $69,120, marking its highest level in more than a week as traders returned from the Easter holiday. The rally caught short sellers offside, with roughly $196 million in bearish positions liquidated over the past 24 hours.

Altcoins moved higher in tandem. Ether led the gains, rising 3.7% to $2,130—its strongest daily performance in a week. Solana added 2% to reach $82, XRP climbed 2.2% to $1.34, and Dogecoin gained 1.7% to $0.093. The broader upswing pushed total crypto market capitalization back above $2.5 trillion.

The move was driven by an Axios report indicating that the U.S., Iran, and regional mediators are discussing terms for a temporary ceasefire that could potentially pave the way for a lasting resolution to the six-week conflict.

Liquidation data highlights how heavily traders had positioned for downside. Out of $273.8 million in total liquidations across more than 81,000 traders, $196.7 million came from short positions, compared with $77.1 million in long liquidations. The largest single event was a $10.17 million ETH-USDT short liquidated on Binance.

Bitcoin experienced a wide trading range over the past 24 hours, moving between $66,634 and $69,350—a swing of roughly $2,700 that intensified pressure on overleveraged short positions.

Sentiment data from Santiment reinforced the contrarian nature of the rally. Social media turned sharply bearish over the weekend, reaching its most negative reading since the conflict began, with five negative posts for every four positive ones. Such extreme pessimism often sets the stage for sharp rebounds in crypto markets.

Despite the latest move higher, Bitcoin remains within its established five-week range between $65,000 and $73,000. Key resistance levels to watch sit at $71,500 and $81,200, aligned with Lower Band and Trader On-chain Realized Price indicators cited in earlier CoinDesk analysis.

The durability of the rally now hinges on whether ceasefire discussions materialize into a concrete agreement—or fade as another short-lived geopolitical headline.