Bitcoin gave up its recent gains after briefly touching a three-week high on Wednesday, as market optimism following an Iran ceasefire proved short-lived.

The world’s largest cryptocurrency climbed to nearly $72,865 during early trading but failed to hold above the key $72,000 level, signaling continued resistance and cautious sentiment among investors.

The temporary ceasefire involving the United States, Israel, and Iran initially boosted global markets. The S&P 500surged at the open, while oil prices dropped amid easing supply concerns, particularly around the Strait of Hormuz.

Despite the positive macro backdrop, Bitcoin’s pullback highlights uncertainty in the crypto market, with traders still seeking stronger confirmation of a sustained bullish trend. Analysts note that holding support near $69,500 remains crucial for further upside momentum.

Market participants are also closely watching upcoming US inflation data, which is expected to drive volatility across risk assets, including cryptocurrencies.

Experts say Bitcoin bulls must reclaim and maintain higher levels above $72,000 to strengthen confidence and potentially push toward new highs in the coming sessions.