Nevertheless, the leading cryptocurrency is back to winning ways after reclaiming the $106,000 level due to growing optimism over a potential Iran-Israel ceasefire meant to ease geopolitical tensions.
Bitcoin’s Rebound Renews Hope
Anxiety in the financial market dropped after the U.S. President Donald Trump declared a “total ceasefire” between Israel and Iran, shifting trader focus to whether Bitcoin can rally toward $110,000 or if lingering downside risks will cap the momentum.
The ceasefire eased fears of further military escalation and global oil supply shocks. Markets had largely priced in de-escalation, as oil prices began falling even after Iran targeted U.S. bases in Qatar.
At the time of this writing, Bitcoin was up by 1.7% in the past 24 hours to hit $107,040.
According to market analyst Crypto King, BTC is eyeing a more upside momentum, thanks to negative funding rates.
The analyst pointed out, “BTC has reclaimed $105K, and funding rates have turned negative once again—a classic setup for a potential Bitcoin short squeeze. With shorts piling in, history suggests an upward move could be imminent for Bitcoin and altcoins.”
Negative funding rates are often considered bullish because they indicate that short traders (those betting on price declines) are dominant and paying long traders to hold their positions.
Therefore, it shows that more traders are shorting Bitcoin in the perpetual futures market.
Another trader by the name Crypto Andy opined that the $105K zone would determine if Bitcoin will experience the next leg up to the $110K zone or a deeper retest was incoming as Bollinger Bands continue to tighten, which is a classic sign of incoming volatility.
Why Reclaiming $105K is Bullish
Bitcoin’s return to the $105,000 zone marks a pivotal bullish inflection point—and here's why its reclamation matters for the digital asset’s next leg up:
1. Technical Breakout Fuels Momentum
The $105K level stands as a strong support zone. Bitcoin not only reclaimed but rebounded off this zone—backed by the 50-day EMA near $103,818—signaling renewed conviction among traders
Technical analysts suggest this breakthrough sets up a classic breakout‑fill‑continue pattern.
2. Macro Tailwinds: Fed Pivot & Weak Dollar
Markets anticipate the Fed beginning rate cuts later in 2025. Bitcoin’s recent climb above $105K came alongside dovish signals at the last FOMC meeting and improving inflation trends.
A softer U.S. dollar, at its worst opening half in years, historically boosts crypto’s appeal as an inflation hedge.
3. Surging Institutional Flows & Strategic Adoption
Indirect Bitcoin exposure—for example via MicroStrategy—is estimated to amount to $50 billion, driven by notable exchange-traded fund (ETF) inflows and passive funds.
Additionally, geopolitical developments such as the U.S. government’s Strategic Bitcoin Reserve (200K BTC held) lend legitimacy to Bitcoin as a sovereign reserve asset.
4. Bullish Forecasts Validate Momentum
Analysts expect Bitcoin to climb to $120–$125K by mid‑2025, with institutional voices like Tom Lee projecting $150–$250K by year‑end.
On‑chain and sentiment indicators (active addresses ~23M, Fear & Greed Index greed-zone) confirm a bullish backdrop
5. Psychological and Structural Impact
Breaking above $105K transforms a key resistance into support, shifting market psychology decisively positive. The $107–108K range becomes the next target, with eyes on $112K+ all‑time highs.
As long-term holders step aside and new inflows arrive, downside risk is limited—suggesting a structured climb rather than a parabolic spike prone to crash.
Conclusion
Bitcoinback above $105,000 might be the linchpin needed to unlock the next upward phase.
With technical, macro, institutional, and psychological forces reinforcing each other, the momentum is strong.
As analysts now set sights on $120K+ through Q3–Q4, and total institutional caps rise, this zone's reclamation could prove one of 2025’s most decisive bullish signals.
Nevertheless, a keen eye should be given to the Iran-Israel situation because it has the potential of shaping how the financial market progresses in the short term.
