Bitcoin has shown a trend of slight increase recently. The conflict between Israel and Iran has shaken the global financial market, and the bitcoin market is no exception, with a significant drop in price. However, as the war tensions show signs of easing, bitcoin is recovering from the downturn, indicating certain resilience.
On June 16, 2025, bitcoin hit a daily high of $107,265, but failed to break through the key resistance level of $108,000 and then fell back to $106,940. According to CryptoQuant’s on – chain data, in the past six months, the bitcoin exchange reserves have decreased by 400,000 BTC. The decrease in available supply may have created conditions for magnifying the impact of new demand. At the same time, the daily chart of bitcoin forms a “bullish pennant” on TradingView. If the pattern is confirmed, the expected breakthrough target is about $127,342, which is 18% higher than the current price.
Nevertheless, multiple on – chain and technical signals are turning bearish. The Network Value to Transactions (NVT) ratio has soared by 83.82% to 56.81, indicating a potential overvaluation. The Stock – to – Flow (S2F) ratio has decreased by 12.5%, challenging the long – term scarcity narrative of BTC. In addition, the short – term liquidation amount has soared to $5.9 million, which may intensify volatility.
The relationship between the price of bitcoin and the development of the Middle East situation is close. If the conflict in the Middle East escalates sharply, it may lead investors to sell risky assets on a large scale, causing the price of bitcoin to plummet. At present, global investors are closely watching the follow – up development of the Middle East situation and the dynamic changes of the bitcoin market.
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