Bitcoin Recovers Above $100,000 Amid Middle East 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 geopolitical 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,wiht losses up to 10% and 5%,respectively.
The airstrikes, confirmed by President Donald Trump, escalated the Israel-Iran conflict. Iran’s threat to close the Strait of Hormuz, a key oil route, sparked fears of rising oil prices and inflation. The market reacted with a $40 billion wipeout and almost $1 billion in long-position liquidations. however, Bitcoin quickly stabilized and rebounded.
Bitcoin’s recovery was fueled by a 75.8% surge in daily trading volume to over $48.4 billion. Despite this, the general trend remains bearish.
Technical analysis shows mixed signals. While the relative strength index is weak, the stochastic RSI and oscillators suggest a potential short-term recovery. If tensions ease, Bitcoin could retest resistance around $105,000-$106,000. Conversely, further conflict could push prices toward $92,000.
The speed of diplomatic resolution and ETF inflows will influence Bitcoin’s response.For now, the market remains cautious but shows signs of stabilization.
