Bitcoin Surges 5% to $105,000 on Middle East Ceasefire

Bitcoin's price has maintained a strong position at $105,000 following the announcement of a ceasefire in the Middle East. This development has bolstered investor confidence, leading to a surge in market morale. The reduction in geopolitical tensions has played a significant role in stabilizing the cryptocurrency's value, as investors have become more optimistic about its prospects.

Institutional interest in Bitcoin remains robust, with Bitcoin ETFs experiencing $350.43 million in net inflows on Monday. This influx of capital indicates a continued appetite for Bitcoin among institutional investors, who are increasingly viewing it as a viable asset class. Additionally, exchange reserves have declined from $2.491 million to $2.485 million this week, suggesting a decrease in selling pressure in the short term. This reduction in exchange reserves is a positive sign for Bitcoin's price stability, as it implies that fewer coins are being sold on exchanges, which could lead to a potential price increase.

Bullish sentiment is also evident in the market, with the "taker buy to sell ratio" on the Bybit exchange showing significant spikes. This ratio indicates that more investors are buying Bitcoin than selling it, which is a bullish signal. Furthermore, several expert analyses and social media posts have set targets for Bitcoin's price as high as $130,000 to $135,000 in the third quarter of 2025. These predictions are based on the current market trends and the potential for a short squeeze, which could drive the price of Bitcoin even higher.

According to a recent analysis, when market interest in Bitcoin wanes, it becomes easier to track the movements of smart money. This is because the data appears stagnant, making it simpler to identify sudden spikes in activity. The current market conditions have seen a significant pattern emerge, where overall market attention is drawn to negative factors, leading to low involvement due to rising fear. During these periods, whale accumulation tends to accelerate, as smart money looks to capitalize on the dip. This pattern has been observed in the past, and it is repeating now, with spikes in the data amid the recent war uncertainty. This suggests that the odds of a price rise are much higher, as smart money is actively accumulating Bitcoin.

Analysts have suggested that a short squeeze could be imminent in the Bitcoin market. From May to June, the Bitcoin price was in a severe range between the month’s swing low support at $100,000 and near all-time high around $109,000. The recent breach of swing low support during the heightened conflict, followed by a recovery from range lows, has built a big liquidity grab, which has hit many traders’ “stop-loss” orders. Now, experts believe the de-escalation could pump more gains ahead in the short term. Aligning with the bullish sentiment, another expert has revealed that the Binance BTC/USDT liquidity heatmap on coin glass suggests that the current price is exchanging hands in the middle of two major liquidity leverage clusters. Still, the topside liquidity cluster is piling up strongly per the 24-hour chart. He suggests that a short-term short-squeeze is coming, and the bull run is not over yet.

In the long term, another expert, Ted Pillows, highlights that the recent war-led dip has changed nothing for BTC’s long-term trajectory. Instead, this dip has ensured that room for more upside is clear; he believes that $130,000 to $135,000 BTC price in Q3 is possible. This long-term bullish outlook is supported by the current market trends and the potential for a short squeeze, which could drive the price of Bitcoin even higher in the coming months.