Bitcoin is trading near $107,000 today showing resilience in the face of renewed geopolitical instability following recent tensions between Israel and Iran. Despite a sharp sell-off on June 13, Bitcoin has rebounded by over 6.5%, bolstered by steady institutional sentiment and stable exchange flows.
Exchange flows show no panic
Onchain data from CryptoQuant reveals that Bitcoin’s exchange netflows remain neutral to negative since June 11, indicating no widespread panic-selling. This suggests traders are not rushing to exit their positions despite military escalations in the Middle East.
- Negative netflows imply coins are being withdrawn from exchanges, typically a bullish signal.
- Lack of spikes in inflows shows market participants aren’t rushing to liquidate.
Derivatives markets remain steady
Open interest across major exchanges has held near $33.5 billion, even after Bitcoin briefly dropped below $100,000 during the initial conflict news. This resilience indicates that:
- Long positions are not being closed en masse.
- Traders are maintaining conviction in Bitcoin’s long-term strength.
CME data hints at cautious institutional adjustment
Futures data from the Chicago Mercantile Exchange (CME) shows only modest outflows in near-term contracts, with the broader curve staying intact. This pattern signals that while some short-term hedges are being reduced, institutional investors are not fleeing the market.
- Institutional sentiment remains intact.
- Minimal liquidations or unwinding of long positions reported.
Analysts warn of potential reversal ahead
While the current sentiment remains calm, some analysts are cautioning about potential downside risks.
A prominent crypto analyst, known as MrParaBULLic, suggests that Bitcoin may be nearing the end of its macro bull cycle. Using Elliott Wave theory, he predicts a possible peak above $200,000 before a sharp drop—potentially down to $30,000.
- A “euphoria trap” could trigger a sudden correction.
- $88,000 is cited as a key support zone.
What’s next for Bitcoin?
As of now, Bitcoin continues to demonstrate market strength amid global uncertainty. However, traders and investors should stay vigilant:
- Watch for signs of escalation in geopolitical conflict.
- Monitor support levels at $100K and $88K.
- Institutional behavior over the next week will be key.
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