It’s been a wild few days for Bitcoin, and anyone watching the charts probably feels like they’ve been on a financial rollercoaster.
The world’s largest cryptocurrency has been swinging sharply in both directions, thanks largely to rising—and then quickly cooling—tensions in the Middle East.
Over the weekend, reports surfaced of U.S. airstrikes on Iranian nuclear sites.
That news spooked investors, sending Bitcoin plunging below the psychologically important $100,000 level.
But in true crypto fashion, the panic didn’t last long.
News broke of a ceasefire agreement between Israel and Iran, and just like that, Bitcoin came roaring back—surging more than 7% in just over 24 hours to climb back above $105,000.
On-Chain Data Shows Sellers Are Stepping Back
Helping to explain this bounce is some interesting data from CryptoQuant’s UTXO Block P/L Count Ratio Model.
For those unfamiliar, this tool helps track investor behavior by measuring whether people are selling at a profit or loss.
Earlier this month, when Bitcoin hit a record $112,000, the model spiked to 34,000 points—a clear sign that many were cashing out at the top.
But since then, that number has dropped dramatically to just 216 points.
Translation? The profit-taking phase seems to be over, and more people are now selling at a loss, which often signals that the worst of the selling pressure may be behind us.
According to analysts, this sharp drop in the metric suggests sellers have largely exited the market.
That’s creating room for new buyers to step in and accumulate—possibly at a discount.
Bitcoin’s Bounce Reclaims Key Support Level
Taking a look at the daily chart, Bitcoin’s price has rebounded from lows around $98,200 and is now hovering above $105,000.
Importantly, it’s also regained the $103,600 level, which has served as both support and resistance several times since March.
The bounce is even more meaningful because BTC dipped below its 50-day simple moving average before climbing back above it.
That’s often taken as a short-term bullish signal by traders.
The move also came just after Bitcoin touched its 100-day SMA near $96,000—an area that has historically attracted buyers during market pullbacks.
Resistance Remains, But Bullish Hopes Are Stirring
Despite the positive momentum, Bitcoin hasn’t yet broken above the $109,300 resistance that has blocked several recent rally attempts.
The volume surge on the recent green candle does suggest that demand is returning, but until BTC convincingly clears that level, it’s still technically stuck in a consolidation pattern.
So while the fear of a big crash has eased (at least for now), Bitcoin still needs to prove it can move decisively higher before bulls can claim victory.
A strong close above $109,300 would likely reignite momentum and set the stage for another run at all-time highs.
Volatility Isn’t Going Anywhere Anytime Soon
Bottom line: Bitcoin’s path forward remains bumpy.
With ongoing geopolitical tensions, a shaky macroeconomic backdrop, and a market hypersensitive to every headline, sharp swings are likely to continue.
But with sellers seemingly stepping aside and key support levels holding strong, bulls might finally be getting the upper hand.