Key Insights
- Bitcoin surged to over $107,000 on Monday after a volatile weekend driven by geopolitical tensions between Israel and Iran.
- Analysts cite institutional inflows, ETF activity, and geopolitical hedging as key drivers behind the rebound, despite failed attempts to hold above $106K resistance.
- Market experts warn of a potential drop to $100,000 by end of June if key support at $105K fails, offering a possible buy-the-dip opportunity.
NEW YORK (MarketsXplora) — Bitcoin briefly rose above $107,000 early Monday, recovering from weekend losses triggered by renewed geopolitical tensions in the Middle East, as analysts flagged both growing institutional interest and looming downside risks.
The world’s largest cryptocurrency was trading at $107,100.32 as of 9:40 a.m. ET, according to CoinMarketCap, up 1.73% in the past 24 hours. The gain follows a turbulent weekend for the crypto market, marked by volatility stemming from Israeli airstrikes on Iranian nuclear sites.
“Geopolitical instability, such as the recent Israeli strikes on Iranian nuclear sites, briefly pushed BTC down 4%, highlighting bitcoin’s sensitivity to risk-off events,” said Rachael Lucas, crypto analyst at BTC Markets. “That said, it often rebounds quickly as investors turn to it as a geopolitical hedge.”
Lucas noted that the current price action is being shaped by a complex mix of macroeconomic data, institutional flows, and geopolitical developments. The cryptocurrency’s fear and greed index currently stands at 61, reflecting what she described as “optimistic but measured” sentiment among market participants.
Adding to the bullish case, Vincent Liu, Chief Investment Officer at Kronos Research, pointed to robust global liquidity and growing institutional demand. He suggested these factors could fuel a breakout once geopolitical tensions subside.
ETF Inflows Signal Bullish Sentiment
Supporting that view, spot bitcoin exchange-traded funds (ETFs) recorded $5.23 billion in net inflows last month, matching inflow levels observed earlier this year around the time of U.S. President Donald Trump’s re-election campaign announcement. The ETF activity has been widely interpreted as a bullish indicator across the crypto space.
Lucas highlighted that Bitcoin’s recent breakout above the $106,406 resistance level signals continued bullish momentum. “The next major target is the all-time high,” she said, though she cautioned that short-term volatility remains in play.
Ether, the second-largest cryptocurrency, also saw gains, rising 1.48% over the past 24 hours to $2,569. Despite Bitcoin’s market dominance hovering around 65%, analysts noted that ether is quietly building institutional momentum, with potential catalysts such as a revived “DeFi summer” adding to its appeal.
Analysts Eye $100K Retest on Weak Technicals
Still, not all indicators point upward. Michaël van de Poppe, a widely followed market analyst, warned that Bitcoin may struggle to maintain its recent gains after failing to hold above the key $106,000 resistance level.
Van de Poppe’s chart analysis shows BTC’s latest rally attempt was rejected shortly after touching that threshold, triggering a wave of long-position liquidations and pushing the price back toward the $104,000–$105,000 range.
“The failed breakout mimics price action from earlier this month, where rejection at similar levels led to a sharp decline toward $100,000,” he said.
If Bitcoin loses support at the $105,000 mark again, Van de Poppe believes it could revisit the $100,000 “liquidity pool” before the end of June — a potential flashpoint that he views as a buying opportunity, particularly if the market seeks to flush out over-leveraged long positions.