- Bitcoin surged 4.5% to $104,946 after Donald Trump called for peace in the Middle East, calming geopolitical fears.
- However, it faces strong resistance at $106,171, and traders remain cautious amid ongoing macroeconomic uncertainty and pending Fed signals.
Bitcoin surged 4.5% to $104,946 on Tuesday, riding a wave of relief following Donald Trump’s call for peace in the Middle East. After Iran’s recent missile retaliation sparked fears and sent Bitcoin dipping below $100,000 twice over the weekend, markets reversed course when Trump stated that the conflict was “contained” and that most missiles were intercepted with no casualties. The message, posted on Truth Social, shifted investor sentiment and reignited risk appetite.
Crypto chatter across platforms like Santiment exploded, with terms like “Iran” and “missiles” trending, underscoring how deeply geopolitical headlines continue to influence digital asset markets.
Resistance at $106K Blocks the Bitcoin Bulls—for Now
Despite the rally, Bitcoin faces a significant technical barrier at $106,171—right where the 200-day exponential moving average (EMA) meets a descending trendline. So far, sellers have stepped in aggressively, leaving rejection wicks just below this level. Without a strong breakout, the bullish case remains tentative.
The key short-term levels to watch are:
- Resistance: $106,171 and $107,673
- Support: $104,606 and $103,354
A decisive move above $106,171 could trigger a run toward $107,673 and possibly $108,966. But if Bitcoin slips below $104,600, bears could drag it down to $101,623.
Macro Signals Still Drive the Market
While Trump’s remarks sparked a relief rally, Bitcoin’s future path remains volatile. Geopolitical risk hasn’t disappeared, and traders are also bracing for new U.S. economic data and Federal Reserve commentary. Rate cut speculation continues to affect risk assets like Bitcoin, which thrive when interest rates are lower.
Binance CEO Changpeng Zhao added a note of perspective, urging long-term thinking: “Only a few strong coins will reach new highs. Focus on staying power.”
Bitcoin’s bounce shows just how sensitive crypto remains to global politics. With resistance looming at $106K and macro uncertainties still at play, traders are walking a fine line. A breakout could open doors to new highs, but caution remains the name of the game.
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