Bitcoin Rebounds Above $108,000 as Middle East Tensions Ease
On June 16, Bitcoin (BTC) rose back above $108,000 after fears of war in the Middle East calmed. This came after reports that Iran might be open to talks with the U.S. and Israel, easing earlier concerns.
Bitcoin had fallen earlier in the week, dropping below this level on June 12 due to rising tensions between Israel and Iran. Now, it has regained that ground.
According to a report by Bitfinex Alpha, this recent price movement is part of a “healthy consolidation” within an overall upward trend. The drop was only 9% from peak to low, which is normal in this cycle where a 7% dip is average.
On June 13, market fear increased briefly, shown by the Fear & Greed Index dropping into “Fear.” But Bitfinex pointed out that this kind of volatility happens often—about 41% of the time in this cycle.
At the time of writing, Bitcoin was trading at $108,621.47, up 3.32% in 24 hours.
Bitcoin Stuck in a Range
Since mid-May, Bitcoin has been moving between $102,000 and its January high of around $109,590.
Between June 9 and June 12, Bitcoin jumped 4.7%, almost hitting $112,000. But it quickly dropped again after news of an Israeli strike on Iran spooked markets, causing investors to sell off risky assets like oil, stocks, and crypto.
During this drop, many traders closed out leveraged positions, pushing a key metric—Net Taker Volume—down to minus $197 million, the worst since June 6. The report said this often signals a local bottom, where forced sellers are mostly done and larger investors start buying again.
Limited Downside Risk
Even though selling pressure has continued since June 12, prices have bounced back. The report says strong support exists between $102,000 and $103,000. If Bitcoin stays above that level, it means buyers are stepping in.
However, unless Bitcoin can clearly break above $109,590, it’s likely to remain stuck in this price range, making it harder for breakout traders to succeed.
Big-picture risks still affect the market. Oil prices rose with Middle East tension, and U.S. Treasury yields climbed—both of which make financial conditions tighter and can pull money away from risky assets like Bitcoin.
Still, the report says Bitcoin’s quick recovery and mild drop compared to past cycles suggest strong demand remains.
What’s Next for Bitcoin?
Today’s market looks different from the double-top pattern that led to the big 2021 crash. Traders are quicker to react to fear, but there's less leverage overall, which helps reduce the risk of deeper drops.
If outside shocks don’t get worse, this could mean quicker recoveries during corrections.
With the next Bitcoin halving still on the horizon and steady inflows into Bitcoin ETFs, the market has reasons to stay optimistic. Traders are watching to see if Bitcoin can break above $109,590 or fall back to test the $103,000 level.
Until one of those happens, Bitcoin is likely to keep bouncing between these two points, offering chances for traders and long-term investors alike.
