• Bitcoin (BTC) surged 3.86% to $105K after hitting a six-week low of $98K.
  • Trump’s Israel-Iran ceasefire announcement sparked a swift rebound in the crypto market.

Bitcoin (BTC) rebounded sharply on Tuesday, climbing 3.86% to reclaim the $105,000 mark after dipping to $98,000 over the weekend. The move followed former U.S. President Donald Trump’s surprise announcement of a ceasefire between Israel and Iran. The de-escalation, dubbed “The 12 Day War,” triggered renewed risk appetite across financial markets.

As Iran and Israel signaled mutual restraint, investors rotated back into non-correlated assets. Bitcoin led the recovery, buoyed by improving sentiment and a technical bounce from oversold conditions. Market cap surged to $2.1 trillion, up 3.76%, while 24-hour trading volume rose 13.7% to $61.64 billion, reflecting renewed capital flows.

Bitcoin’s circulating supply remained steady at 19.88 million BTC, just shy of its 21 million maximum cap. The market cap ratio hit 2.98%, confirming heightened trading intensity. Despite broader market uncertainty, BTC’s positioning as a geopolitical hedge once again found validation.

Macroeconomic forces also underpinned the rally. The U.S. Federal Reserve’s dovish tone and stronger expectations for a September rate cut, now at 80%, weakened the dollar.

Is Bitcoin Ready to Break Above $110K?

Technically, BTC now hovers near a breakout threshold. A close above $106,500 could confirm a bullish continuation and trigger a run toward $120,000. On-chain signals, combined with improving volume, hint at a maturing breakout setup. Investors should watch for confirmation via sustained price action above the resistance level.

Bitcoin (BTC) Reclaims $105K as Trump Ceasefire and Fed Outlook Fuel Rally image 0

Meanwhile, technical indicators reinforce optimism. The daily RSI has crossed above its 14-day average at 52.94 versus 48.97, marking a bullish shift in momentum. Moreover, the Chaikin Money Flow (CMF) reads 0.17, indicating consistent capital inflows.

The candle structure shows a strong bullish engulfing near key support, strengthening the narrative of bottoming out. If bulls clear $106,500, the price could rapidly approach $120,000. However, a failure to do so may invite a retest of $102,000.

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