Bitcoin Recovers Above $100,000 Amid Geopolitical Tensions
Bitcoin has reclaimed the $100,000 mark after a brief dip below this significant level. The drop was triggered by heightened Middle East tensions following U.S. airstrikes on Iranian nuclear facilities. This event caused a sharp sell-off, pushing Bitcoin down nearly 4% to a multi-week low of $98,615 on June 22. Other cryptocurrencies like Ethereum and Solana also suffered, with losses of up to 10% and 5%, respectively.
The airstrikes,confirmed by President Donald Trump,escalated the Israel-iran conflict.This led to a $40 billion cryptocurrency market wipeout and almost $1 billion in long-position liquidations.
However, Bitcoin quickly rebounded above $100,000, driven by a 75.8% surge in daily trading volume to over $48.4 billion. Despite a slight decline in open interest, derivatives activity surged, with volume rising 67% to $136 billion, according to Coinglass data.
From a technical standpoint, the trend remains bearish. Bitcoin trades below its 10-day and 20-day exponential moving averages. The price hovers below the Bollinger Bands’ midline, indicating weak upward momentum.
Momentum indicators show mixed signals. The relative strength index of 39 suggests a weak market but not yet oversold. The stochastic RSI and oscillators are in buy territory, hinting at a possible short-term recovery. Though, the 10-day momentum and moving average convergence divergence remain bearish.
Bitcoin may retest resistance between $105,000 and $106,000 if tensions ease. Conversely, further declines toward $92,000 or lower are possible if the conflict escalates. The speed of diplomatic resolution and ETF inflows will likely influence Bitcoin’s response.
- Bitcoin recovered above $100,000 due to increased trading volume.
- Derivatives activity surged despite a slight decline in open interest.
- Technical indicators suggest a bearish trend,with prices below key moving averages.
Geopolitical tensions and market reactions will shape Bitcoin’s future.
