$3.1 billion in open interest has been erased from Bitcoin futures in the past 72 hours - a 15% drop that signals a significant shift in trader sentiment.

As the crypto market reacts to the US-Iran peace deal, Bitcoin (BTC) has surged above $67,000, but derivatives data reveal a different story, with traders' skepticism evident in a 30% increase in put options, a clear indication that the market is bracing for a potential reversal.

Smart money is selling into the rally, with institutions liquidating their positions and taking profits, evident in the sharp decline of open interest.

The market is now watching the 50-day moving average at $52,000, a critical level that, if breached, could trigger a cascade of stop-loss orders and accelerate the downtrend.

Can bulls sustain the momentum or will the market prove that this recent rally was indeed a bull trap?