The crypto market recovered as both parties involved in the war in the Middle East agreed to a ceasefire. The crypto market cap recovered by more than about 5% while the sentiment of the traders improved. Bitcoin, Ethereum, and some of the other altcoins crossed some important resistance levels.
The conflict in the Middle East between Israel and its allies, the U.S. and Iran, has improved for the better. The ceasefire and possible peace talks come at an awkward time, as just a day earlier, U.S. President Trump threatened to wipe out the whole civilization. The crypto markets reacted very quickly to the sounds of a ceasefire.
Market cap crosses $2.45 trillion
The crypto market cap, which was moving sideways since the last week of March below the $2.4 trillion level, once again recovered this level. Currently the market cap is at $2.45 trillion after appreciating by more than 5%.
The increase in the market shows an important sign: it shows that the traders are moving from a risk-off mode to a risk-on mode for risky assets. With the uncertainty of the war being taken out of the equation, risk appetite returned.
During the war, capital was sitting on the sidelines, waiting for the blurry market conditions and geopolitical conditions to get better. As soon as there was good news, the market returned to its normal state, dismantling the previous equilibrium levels.
Fear and greed index falls back to neutral zone
The Fear and Greed index, which gauges the sentiment of the market, has once again returned to neutral after being in the fear zone for almost two weeks. Sentiment reversal in markets often happens much faster than fundamentals, and the fear and greed index is one of the clearest ways to see this shift in real time.
Sentiment reversal is much faster than fundamental as markets don’t move on what is – it moves on what people think will happen next. When sentiments reverse like flipping a switch, it takes time for fundamentals (like earnings, adoption, or macro data) to change and even longer to confirm.
When a major event like a ceasefire hits, it doesn’t immediately improve fundamentals—but it removes uncertainty, and that’s enough for traders to reposition.
During the conflict phase, the index typically sits in the fear zone, reflecting panic-driven behavior where traders are fast to de-risk, sell positions, and move into safety. This kind of selling isn’t fundamentally based but on emotion and reaction. As that fear gets exhausted, there are simply fewer sellers left in the market.
Once news of a ceasefire or stability emerges, the narrative flips almost instantly from panic to opportunity. It is when this happens that the fear and greed index starts climbing out of fear and into the neutral zone, signaling that extreme pessimism is fading.
During an active conflict, traders usually move into protection mode. They reduce leverage, hold more cash, and stay cautious on risky assets because the main fear is not just volatility but unpredictable escalation. A ceasefire lowers that immediate tail risk, so money starts moving back into crypto and other high-beta assets. But that liquidity is still selective, with stronger flows going into quality, liquid names, while lower-quality tokens usually see only short-term swing trading rather than lasting conviction.
Analyst Lavneet Bansal
Bitcoin recovers $70K psychological resistance
With both parties reaching a ceasefire, the crypto market has started to heal. Bitcoin in particular has shown an excellent recovery. From values as low as $68K, Bitcoin rose to $72K, recovering the psychological $70K level.
Not only did BTC recover this resistance level, but it also recovered above the 50-day and 200-day moving averages. Even the relative strength index indicator is making higher highs and higher lows, showing the increasing strength of the bulls.
ETH crosses above $2.25K resistance level
Meanwhile, Ethereum also crossed above a psychological resistance level of $2.1K and reached as high as $2.25K. The spike was evident on the 4-hour chart. On top of that, the 50-day moving average crossed the 200-day moving average from below, and a golden cross happened.
When the golden cross happens, it will be followed by another price rally, as traders see this as a technical bullish sign to enter the market.
Even the ETH prices are showing a gradual increment where the price makes higher lows and higher highs when the price action since last month is considered. This is not just a spike- or hype-related rally, but it is more of a long-term conviction.
