Bitcoin has surged to $106,000, driven by geopolitical tensions between Iran and Israel. Despite the price increase, traders remain bearish, noting that Bitcoin is still below key trendlines. Resistance levels are identified at $105,700 and $108,000, with expectations of a continued downtrend following what is seen as a temporary short squeeze. The ceasefire announcement in the Iran-Israel conflict has led to a significant short squeeze, pushing Bitcoin from $104,800 to above $106,000. Traders are employing volatility selling strategies, with implied volatility at around 40% not fully capturing actual market movements. Options flow indicates a preference for bearish spreads and $108,000 strike price short call options, as traders view the geopolitical-driven rally as a false move and an opportunity to increase bearish positions.