Bitcoin Mirrors 80% Rally Setup That Preceded 2024 Israel-Iran Conflict

Bitcoin has bounced back from a recent 5.5% drop prompted by the Israel-Iran conflict, mirroring a pattern from late 2024 that preceded a significant surge. Analysts suggest BTC is set to break out toward new highs, with predictions for 2025 ranging from $150,000 to over $200,000. However, some skeptics warn that Bitcoin’s recent uptrend may be nearing its peak.

Bitcoin is once again making headlines, showing a rebound after a significant drop triggered by the escalating conflict between Israel and Iran. The cryptocurrency dipped by 5.5% in response to Israel’s airstrikes on Iranian sites but managed to recover some losses, climbing above $105,500. What’s interesting is how this pattern closely resembles a similar setup in October 2024, right before an 80% surge in value. Many are eyeing this latest movement with a cautious optimism.

Observers note that BTC’s bounce back aligns neatly with a critical technical level known as the 50-day simple moving average (SMA). This level, represented by a red wave, has historically served as a reliable support line. Back in October 2024, Bitcoin similarly fell—by almost 9%—after heightened tensions in the region, only to rebound sharply thereafter, hitting a peak of $108,365 by December. Many say that until this recent pullback, Bitcoin held strong amid geopolitical turmoil.

But wait, there’s more: a study conducted by Andre Dragosch from Bitwise highlights that despite short-term declines during conflicts, Bitcoin has a track record of bouncing back. Typically, it takes around 50 days for BTC to recover and even exceed previous price levels. This resilience amid chaos suggests that the current dip might just be a bump in the road in its overall upward trend, especially with some recent favorable economic indicators and easing of trade tensions.

Now, let’s zoom in on market dynamics. Analyst Merlijn The Trader points out that a different fractal pattern is emerging, similar to past performance. Indicators show Bitcoin might break through key resistance levels. According to him, the recent price movements appear to echo those that led to a surge beyond $100,000 after the 2024 conflict: “Same structure. Same trap. Same breakout,” he asserts. The buzz in the analyst community hints that Bitcoin’s next target could be around $150,000 to over $200,000 by the end of 2025.

However, not everyone is on board with this bullish outlook. Some analysts caution that Bitcoin’s upward momentum might have already peaked around its current highs of $112,000. So, as we sift through these contrasting viewpoints, one thing is clear: the cryptocurrency market remains as unpredictable as ever. Amidst the uncertainty, potential investors ought to tread carefully and remember that every trade carries its own risks.

In summary, Bitcoin is navigating some choppy waters thanks to geopolitical unrest but is also showing signs of resilience. The recent drop has sparked nostalgic comparisons to past patterns that preceded significant price rallies. With analysts suggesting potential highs of $150,000 and the notable support of whales accumulating during these dips, the coming months will be vital in determining Bitcoin’s trajectory. However, as always, caution is advised in the unpredictable world of cryptocurrency investing.

Original Source: cointelegraph.com