Bitcoin Surges 6% to $104,000 on Ceasefire News

Bitcoin (BTC) experienced a significant rebound, surging above $104,000 in early trading following a temporary ceasefire announcement. This development signaled a reduction in geopolitical tensions that had previously unsettled global markets. The cryptocurrency is now trading firmly above the key $102,500 level and the 100-hourly simple moving average, having rebounded from last week’s intraday low of $98,277. The recovery was supported by a decisive break above a bearish trendline resistance at $101,500.

The ongoing conflict had sent shockwaves through both crypto and equities markets last week, with Bitcoin tumbling below the $100,000 psychological level for the first time since May. However, the ceasefire declaration over the weekend appears to have renewed optimism, leading to a shift toward risk assets. Bitcoin led the digital asset rebound, breaking past the $102,000 and $103,200 resistance zones before stalling near the $106,000 mark.

Bitcoin is currently trading near the 76.4% Fib retracement level of the decline from the $106,470 swing high to the $98,277 low, signaling strong buying interest. A close above the $106,500 resistance could trigger another leg up toward the $108,000 zone, with further gains opening the door to a potential rally toward $110,000. Immediate resistance levels include $106,000 and $106,200, with a key breakout level at $106,500. Support levels to watch are $104,000, $103,500, $102,500, and the critical support at $100,000.

Technical indicators suggest that the hourly MACD is showing a slowdown in bullish momentum, while the hourly RSI remains comfortably above the neutral 50 level. This indicates that the bullish trend could continue if no fresh risks emerge. However, failure to clear the $106,000–$106,500 resistance range could lead to renewed selling pressure. Analysts warn of potential downside risk toward $102,500, with a breach of the $100,000 support likely to accelerate losses. Market sentiment has turned cautiously optimistic as long as Bitcoin maintains its position above $102,500 in the short term.

Bitcoin’s rebound comes as geopolitical tensions ease, offering a moment of relief for traders and investors. The market’s next focus will be whether BTC can decisively flip the $106,500 resistance, potentially resuming its march toward new highs. The coming days could prove pivotal for Bitcoin’s short-term trajectory, especially as global macro conditions continue to evolve and U.S. monetary policy expectations remain fluid.

The relief rally is a clear indication that geopolitical events have a significant impact on the cryptocurrency market. The ceasefire has provided a sense of stability, allowing investors to take a more optimistic view of the market. As the situation continues to develop, it will be interesting to see how Bitcoin's price responds to further geopolitical events and market dynamics. The cryptocurrency's ability to bounce back from market volatility is a key factor in its appeal to investors, who see it as a reliable store of value in uncertain times.