Bitcoin rose above $65,000 overnight but failed to extend gains and soon fell below $64,000.

Cointelegraph reported on June 22 that bitcoin hit $65,555 on Bitstamp around the U.S. stock market open. That was the highest level since last Wednesday.

The move ran counter to U.S. equities. U.S. stocks opened weaker amid uncertainty over the direction of a peace agreement between the United States and Iran. Market jitters eased somewhat after the United States allowed trade in Iranian oil for two months. Analysis firm The Kobeissi Letter said Iranian oil had officially returned to global markets for the first time since 2018.

Oil markets reacted immediately. U.S. West Texas Intermediate (WTI) crude neared $73 a barrel, slipping to its lowest level since early March. It was also near the lows since the outbreak of war.

Traders focused on the clearing of liquidation above $65,000 first. Analyst Daan Crypto Trades presented CoinGlass data and said a thick liquidation cluster above $65,000 was swept away shortly after the U.S. market opened, adding that where it moves in the next few hours is important.

Attention then shifted to the next liquidity zone. CryptoReviewing said recent liquidations were completely abnormal, noting bitcoin liquidated $2.5 billion over seven days. It said meaningful liquidity remained above, between $65,000 and $67,000, and that sweeping it could lead to higher prices.

An upper target of $70,000 was cited. CryptoNuevo left open the possibility of a move to around $70,000 if buying keeps a short-term breakout intact. The near-term focus became whether the current range would end as a simple rebound or lead to a trend reversal that continuously absorbs upper liquidity.

The rise did not last long. After breaking above $65,000, bitcoin slipped back below $64,000 as buying momentum cooled. That was seen as short-term profit-taking and pullback pressure emerging after liquidation above was absorbed and additional buying failed to follow.

That has also led to a wait-and-see mood over whether the break above $65,000 was a signal of trend reversal. Some in the market see that if bitcoin does not quickly recover the $64,000 level, the recent rebound could be a temporary move after absorbing upper liquidity.

In this situation, the market is watching two things at the same time. One is whether the break above $65,000 leads to absorbing liquidity around $67,000. The other is whether the repeatedly seen Monday high pattern is reproduced again. Bitcoin extended its own strength despite weaker U.S. stocks and falling oil prices, but in the near term liquidation zones and time-based shifts in supply and demand are increasingly likely to set the direction.

BREAKING: The US has issued Iran a general oil-related license allowing the production, delivery, and sale of Iranian-origin oil, petrochemical, and petroleum products through August 21st. Iranian oil is officially returning to global markets for the first time since 2018.