Short Squeeze, U.S.-Iran Deal Hopes Lift Bitcoin, Zcash

Short liquidations and hopes of a U.S.-Iran deal lifted the crypto market 0.84% on Monday, pushing total market capitalization toward $2.15 trillion. Bitcoin climbed to about $63,100 from a low near $59,014, and Zcash advanced roughly 12.5% to about $427.

The rally followed a wave of short-covering that forced bearish traders to buy back positions in a thin market, with roughly $522 million in short liquidations recorded over 24 hours. The broader market had been trading near cycle lows after steep losses last week; the rebound that began June 6 produced a green daily candle on June 7 as total capitalization found support near $2.02 trillion.

Global risk events added volatility to the session. South Korea’s main index fell more than 8% and tripped a circuit breaker after major chip stocks dropped about 10%. President Trump stated the U.S. and Iran were close to a deal even as missile activity continued in the Middle East, keeping risk appetite fragile.

Market technicians said price action looked driven more by forced liquidations than by new buying. Trading volume on the rebound lagged the mid-May advance, and early signs of renewed selling appeared as larger holders realized losses on recent purchases.

Analysts identified key levels for the total market cap: a daily close above $2.19 trillion could open a path to $2.29 trillion and $2.37 trillion; a break below $2.02 trillion would reopen the downside and risk another round of long liquidations.

Bitcoin-specific technicals showed a similar setup. A daily close above $64,283 would be seen as confirming short-term strength, while $58,666 was the nearest support. Further declines would expose levels near $55,192, $52,384 and $49,576, according to chart-based analysis.

Zcash led gains among top-100 tokens, recovering from a fall toward $250 on some exchanges to trade near $427. The June 7 candle was Zcash’s largest buy signal since early February and pushed the price back above the 200-day exponential moving average; the token was testing its 100-day line.

Traders monitoring Zcash said reclaiming $469 and then $521 would open a path to $594 and $688, while a confirmed bearish crossover of shorter-term moving averages would raise the risk of a renewed slide.

Andrei Grachev, co-founder of DWF Labs, warned that concentrated forced selling by large holders, including corporate treasuries and mining firms, could trigger a much larger downturn and suggested investors consider scenarios where Bitcoin could fall toward $10,000 to $20,000.

Market participants said they will watch macro headlines and on-chain flows for confirmation of the rebound, and will track whether buying volume can strengthen to sustain levels above recent resistance or whether external shocks push the market back toward last week’s lows.